A UK£247m market cap addition is just what The Berkeley Group Holdings plc (LON:BKG) insiders like to see after purchasing stock worth UK£2.5m

The Berkeley Group Holdings plc (LON:BKG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 5.7%, resulting in a UK£247m rise in the company’s market capitalisation. As a result, their original purchase of UK£2.5m worth of stock is now worth UK£2.8m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Berkeley Group Holdings

Berkeley Group Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Director Rob Perrins bought UK£1.8m worth of shares at a price of UK£36.95 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£41.73. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.

Berkeley Group Holdings insiders may have bought shares in the last year, but they didn’t sell any. 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!

insider-trading-volume

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

Insiders at Berkeley Group Holdings Have Bought Stock Recently

It’s good to see that Berkeley Group Holdings insiders have made notable investments in the company’s shares. Overall, three insiders shelled out UK£2.5m for shares in the company — and none sold. This is a positive in our book as it implies some confidence.

Does Berkeley Group Holdings Boast High 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Berkeley Group Holdings insiders own about UK£80m worth of shares. That equates to 1.7% of the company. 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 Does This Data Suggest About Berkeley Group Holdings Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Berkeley Group Holdings we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Berkeley Group Holdings. At Simply Wall St, we found 2 warning signs for Berkeley Group Holdings that deserve your attention before buying any shares.

Of course Berkeley Group Holdings 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, but not derivative transactions.

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.

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