Anyone interested in Breville Group Limited (ASX:BRG) should probably be aware that the Independent Non-Executive Director, Dean Howell, recently divested AU$734k worth of shares in the company, at an average price of AU$36.69 each. The eyebrow raising move amounted to a reduction of 29% in their holding.
View our latest analysis for Breville Group
Over the last year, we can see that the biggest insider sale was by the MD, CEO & Director, Jim Clayton, for AU$4.0m worth of shares, at about AU$34.75 per share. That means that even when the share price was below the current price of AU$36.45, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 29% of Jim Clayton's stake.
Breville Group insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Breville Group insiders own about AU$28m worth of shares. That equates to 0.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
An insider sold Breville Group shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Breville Group is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Breville Group. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Breville Group.
But note: Breville Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
Discover if Breville Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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