Read This Before Selling Brewin Dolphin Holdings PLC (LON:BRW) Shares
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Brewin Dolphin Holdings PLC (LON:BRW).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
View our latest analysis for Brewin Dolphin Holdings
The Last 12 Months Of Insider Transactions At Brewin Dolphin Holdings
Over the last year, we can see that the biggest insider purchase was by CFO & Director Siobhan Boylan for UK£99k worth of shares, at about UK£3.00 per share. That means that an insider was happy to buy shares at above the current price of UK£2.30. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Brewin Dolphin Holdings insiders bought shares during the last year, they didn't sell. Their average price was about UK£2.55. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Brewin Dolphin Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Brewin Dolphin Holdings Insiders Bought Stock Recently
Over the last quarter, Brewin Dolphin Holdings insiders have spent a meaningful amount on shares. Overall, three insiders shelled out UK£48k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Brewin Dolphin Holdings insiders own 0.2% of the company, worth about UK£1.3m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Brewin Dolphin Holdings Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Brewin Dolphin Holdings stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Brewin Dolphin Holdings you should be aware of, and 1 of these doesn't sit too well with us.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
