Domenico De Lorenzo Bought 76% More Shares In Fevertree Drinks

Potential Fevertree Drinks PLC (LON:FEVR) shareholders may wish to note that the Independent Non-Executive Chair of the Board, Domenico De Lorenzo, recently bought UK£348k worth of stock, paying UK£7.80 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 76%, potentially signalling some real optimism.

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Fevertree Drinks Insider Transactions Over The Last Year

In fact, the recent purchase by Domenico De Lorenzo was the biggest purchase of Fevertree Drinks shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£8.38 per share to be enticing. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Fevertree Drinks insider decided to buy shares at close to current prices. Domenico De Lorenzo was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Fevertree Drinks

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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fevertree Drinks insiders own 10% of the company, currently worth about UK£95m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Fevertree Drinks Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Fevertree Drinks we think they are probably pretty confident of a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Fevertree Drinks.

Of course Fevertree Drinks 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.