Investors who take an interest in Burford Capital Limited (LON:BUR) should definitely note that insider Travis Lenkner recently paid UK£10.28 per share to buy UK£260k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Burford Capital
Burford Capital Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Founder & Chief Investment Officer Jonathan Molot bought UK£9.2m worth of shares at a price of UK£11.08 per share. That means that an insider was happy to buy shares at above the current price of UK£10.26. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably Jonathan Molot was also the biggest seller.
Over the last year, we can see that insiders have bought 860.27k shares worth UK£9.5m. But insiders sold 834.97k shares worth UK£9.2m. Overall, Burford Capital insiders were net buyers during the last year. 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!
Burford Capital is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Burford Capital Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Burford Capital insiders own 5.5% of the company, worth about UK£125m. 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 Does This Data Suggest About Burford Capital 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. When combined with notable insider ownership, these factors suggest Burford Capital insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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. For instance, we've identified 2 warning signs for Burford Capital (1 doesn't sit too well with us) you should be aware of.
But note: Burford Capital 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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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.
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