Insider Stock Buying Reaches Mex$3.72m On Betterware de MéxicoP.I. de

Quite a few insiders have dramatically grown their holdings in Betterware de México, S.A.P.I. de C.V. (NYSE:BWMX) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The Last 12 Months Of Insider Transactions At Betterware de MéxicoP.I. de

Notably, that recent purchase by Luis Campos Orozco is the biggest insider purchase of Betterware de MéxicoP.I. de shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$17.31. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

Betterware de MéxicoP.I. de insiders may have bought shares in the last year, but they didn't sell any. 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 Betterware de MéxicoP.I. de

Betterware de MéxicoP.I. de is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Betterware de MéxicoP.I. de Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Betterware de MéxicoP.I. de. In total, insiders bought US$3.6m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Does Betterware de MéxicoP.I. de Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Betterware de MéxicoP.I. de insiders own about US$363m worth of shares (which is 58% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Betterware de MéxicoP.I. de Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Betterware de MéxicoP.I. de. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Betterware de MéxicoP.I. de. At Simply Wall St, we've found that Betterware de MéxicoP.I. de has 3 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course Betterware de MéxicoP.I. de 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.