Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Young & Co.'s Brewery, P.L.C. (LON:YNGA), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Young's Brewery
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Torquil Charles Florance Sligo-Young for UK£91k worth of shares, at about UK£7.65 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£11.82. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Young's Brewery insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Young's Brewery
Young's Brewery is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Young's Brewery
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Young's Brewery insiders own about UK£90m worth of shares (which is 15% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Young's Brewery Insiders?
It doesn't really mean much that no insider has traded Young's Brewery shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Young's Brewery and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Young's Brewery.
But note: Young's Brewery 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.
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