Those following along with Bruker Corporation (NASDAQ:BRKR) will no doubt be intrigued by the recent purchase of shares by Frank Laukien, Chairman of the company, who spent a stonking US$1.0m on stock at an average price of US$50.92. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.05%.
See our latest analysis for Bruker
Notably, that recent purchase by Chairman Frank Laukien was not the only time they bought Bruker shares this year. They previously made an even bigger purchase of US$5.0m worth of shares at a price of US$51.36 per share. So it's clear an insider wanted to buy, at around the current price, which is US$52.92. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Bruker share holders is that an insider was buying at near the current price. Frank Laukien was the only individual insider to buy shares in the last twelve months.
Frank Laukien bought a total of 120.00k shares over the year at an average price of US$50.27. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Bruker insiders own 32% of the company, currently worth about US$2.5b based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Bruker. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Bruker (1 is concerning!) and we strongly recommend you look at them before investing.
Of course Bruker may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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