Neil Miller Buys Handful Of Shares In Franchise Brands
Whilst it may not be a huge deal, we thought it was good to see that the Franchise Brands plc (LON:FRAN) CFO & Director, Neil Miller, recently bought UK£51k worth of stock, for UK£1.45 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Franchise Brands
The insider, Andrew Mallows, made the biggest insider sale in the last 12 months. That single transaction was for UK£103k worth of shares at a price of UK£1.26 each. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£1.44. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 40% of Andrew Mallows's holding. Andrew Mallows was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 285.00k shares worth UK£348k. But they sold 81.78k shares for UK£103k. In total, Franchise Brands insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Franchise Brands
Franchise Brands 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.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 26% of Franchise Brands shares, worth about UK£72m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Franchise Brands Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Franchise Brands insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Franchise Brands.
But note: Franchise Brands may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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