It is not uncommon to see companies perform well in the years following an insider purchase of shares. Unfortunately, there are also many examples of stock prices plummeting after insiders sell stocks. We will therefore examine whether insiders have bought or sold shares of Limited brand concepts (NSE: BCONCEPTS).
Are Insider Trading Important?
Most investors know that it is perfectly okay for business executives, such as directors of the board of directors, to buy and sell company stock. However, most countries require the company to disclose these transactions to the market.
We don’t believe shareholders should just follow insider trading. But it makes perfect sense to keep an eye on what insiders are doing. For example, a Harvard University study found that “insider buying generates abnormal returns of over 6% per year.”
See our latest review for branding concepts
Branding Concepts Insider Transactions in the Past Year
While there haven’t been any significant insider trades in the past twelve months, it is still worth reviewing the trades.
You can see insider trading (by companies and individuals) over the past year shown in the graph below. If you click on the chart you can see all of the individual trades including the stock price, individual and date!
Brand Concepts isn’t the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Insider ownership of brand concepts
I like to look at how many shares insiders own in a company, to help inform my perspective on their alignment with insiders. Strong insider ownership often makes company management more concerned with the interests of shareholders. Brand Concepts insiders own 76% of the company, currently worth around 231 million yen based on the recent share price. I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
What could insider trading tell us at Brand Concepts?
We certainly don’t mind the fact that there hasn’t been any Brand Concepts insider trading recently. But insiders have shown more appetite for the stock, over the past year. With strong insider ownership and encouraging transactions, it seems Brand Concepts insiders believe the company has merit. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. For example, Brand Concepts has 4 warning signs (and 2 that are of concern) we think you should be aware of.
But beware : Brand Concepts may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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