The Brink's Company (NYSE:BCO) insiders need another US$14k to breakeven on a US$600k stock purchase even after recent gains




  • In Business
  • 2022-08-18 11:37:27Z
  • By Simply Wall St.
 

Insiders who bought US$600k worth of The Brink's Company (NYSE:BCO) stock in the last year recovered part of their losses as the stock rose by 3.8% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$14k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Brink's

Brink's Insider Transactions Over The Last Year

The Executive VP & Chief Human Resources Officer Simon Davis made the biggest insider purchase in the last 12 months. That single transaction was for US$505k worth of shares at a price of US$59.60 each. That means that an insider was happy to buy shares at above the current price of US$58.62. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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.

In the last twelve months insiders purchased 10.00k shares for US$600k. On the other hand they divested 5.12k shares, for US$352k. In total, Brink's 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!

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.

Brink's Insiders Bought Stock Recently

It's good to see that Brink's insiders have made notable investments in the company's shares. We can see that Executive VP & Chief Human Resources Officer Simon Davis paid US$505k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of Brink's

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.1% of Brink's shares, worth about US$57m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Brink's Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Brink's insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Brink's you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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