Brady Corporation (NYSE:BRC) may have lost US$207 million in value, but insiders who invested last year have seen gains of around US$2,000 so far
Insiders who bought Brady Company (NYSE:BRC) Year-to-date equity fans are unlikely to be as affected by last week’s 8.4% loss. The reason being that, despite the recent loss, the initial insider purchase value of US$435,000 is now worth US$437,000.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would consider it foolish to completely ignore insider trading.
Check out our latest analysis for Brady
Brady insider trades over the past year
In the past twelve months, the largest single insider purchase occurred when Chairman Russell Shaller bought US$435,000 worth of stock at US$43.50 per share. This implies that an insider found the current price of US$43.70 per share attractive. Although their perspective has changed since the purchase, it at least suggests they have confidence in the company’s future. If someone is buying stocks well below current prices, that’s a good sign overall, but keep in mind that they may no longer see value. The good news for Brady shareholders is that an insider was buying close to the current price. The only individual insider to buy in the past year was Russell Shaller.
You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
Brady isn’t the only insider stock to buy. So take a look at this free list of growing companies with insider buying.
Brady Insider Property
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. Brady insiders own approximately $215 million in stock (or 9.5% of the company). I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.
What could insider trading at Brady tell us?
Good to see the recent insider buying. We also rely on the longer-term picture of insider trading. Once you factor in the strong insider ownership, it certainly seems like insiders are positive about Brady. Nice! Sure, the future is what matters most. So if you are interested in Brady you should check this out free analyst forecast report for the company.
But note: Brady 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 persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.