Gerardus Jegen Bought 24% More Shares In B&M European Value Retail

Those following along with B&M European Value Retail plc (LON:BME) will no doubt be intrigued by the recent purchase of shares by Gerardus Jegen, CEO & Director of the company, who spent a stonking UK£385k on stock at an average price of UK£2.33. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 24%.

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B&M European Value Retail Insider Transactions Over The Last Year

Notably, that recent purchase by Gerardus Jegen is the biggest insider purchase of B&M European Value Retail shares that we've seen in the last year. That means that even when the share price was higher than UK£2.25 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 245.93k shares for UK£543k. But insiders sold 10.85k shares worth UK£20k. Overall, B&M European Value Retail insiders were net buyers during the last year. 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 B&M European Value Retail

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does B&M European Value Retail Boast High Insider Ownership?

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. Our data suggests B&M European Value Retail insiders own 0.1% of the company, worth about UK£2.2m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About B&M European Value Retail Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that B&M European Value Retail insiders are reasonably well aligned, and optimistic for the future. 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. Our analysis shows 3 warning signs for B&M European Value Retail (1 is concerning!) and we strongly recommend you look at these before investing.

Of course B&M European Value Retail may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.