Trade Alert: The Director of Operations & Member of Management Board Of British American Tobacco p.l.c. (LON:BATS), Alan Davy, Has Just Spent UK£2.6k Buying A Few More Shares
While it's not a big buy, we think it's good to see Alan Davy, Director of Operations & Member of the Management Board of British American Tobacco p.l.c. (LON: BATS) recently spent £ 2.6k buying shares for £ 27.79 per share. Although the purchase is neither percentage nor absolute, it can be seen as a good sign.
Check out our latest analysis for British American Tobacco
The last 12 months of insider trading with British American Tobacco
In fact, Alan Davy's most recent purchase was, on our records, the largest purchase of British American Tobacco stock any insider person has made in the past twelve months. This means that an insider was happy to buy shares at a price above the current price of £ 27.10 in the UK. While their view may have changed since buying it, it at least suggests that they had confidence in the company's future. From our point of view, the price an insider pays for stocks is very important. In general, we notice when an insider bought stocks at shares bought above current prices, as this suggests that the stocks were worth buying at a higher price too. Alan Davy was the only insider to buy stocks in the past twelve months.
Alan Davy bought a total of 175.00 shares during the year at an average price of £ 29.35 in the UK. The following graph shows insider transactions (by companies and individuals) over the past year. If you want to know exactly who sold how much and when, just click on the graphic below!
Insider trading volume
British American Tobacco isn't the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.
Does British American Tobacco have a high level of inside ownership?
For a common stockholder, it is worth checking how many shares are held by insiders. We usually like to see a pretty high level of inside ownership. British American Tobacco insiders own approximately £ 107m worth of shares (that's 0.2% of the company). I like this level of insider ownership because it increases the chances of management thinking about the best interests of shareholders.
What could insider deals at British American Tobacco tell us?
We note that there has been a bit of inside buying (but not selling) lately. The net investment is not enough to give us great encouragement. However, our analysis of transactions over the past year is encouraging. It would be great to see more insider buying, but overall, British American Tobacco insiders seem reasonably well-targeted (they own a significant chunk of the company's stock) and optimistic about the future. We would like to know what is wrong with the insider's property and transactions, but we should also consider the risks a stock is exposed to before making any investment decision. Case in point: we discovered two British American Tobacco warning signs that you should be aware of.
If you'd rather try a different company - one with potentially superior financials - don't miss this free list of interesting companies with high return on equity, low debt.
For the purposes of this article, insiders are persons who report their transactions to the competent supervisory authority. We currently consider open market transactions and private sales, but not derivative transactions.
This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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