Favourable Signals For Young’s Brewery: Numerous Insiders Acquired Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Young & Co.’s Brewery, P.L.C.’s (LON:YNGA) instance, it’s good news for 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.

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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. That means that even when the share price was higher than UK£7.40 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Young’s Brewery insiders may have bought shares in the last year, but they didn’t sell any. 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!

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.

Over the last quarter, Young’s Brewery insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£154k worth of shares. This could be interpreted as suggesting a positive outlook.

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Young’s Brewery insiders own 9.8% of the company, worth about UK£42m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Young’s Brewery shares, given these transactions (along with notable insider ownership of the company). So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. To assist with this, we’ve discovered 2 warning signs that you should run your eye over to get a better picture of Young’s Brewery.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.