Those following along with Barnes Group Inc. (NYSE:B) will no doubt be intrigued by the recent purchase of shares by Thomas Hook, President of the company, who spent a stonking US$997k on stock at an average price of US$36.27. That increased their holding by a full 219%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
View our latest analysis for Barnes Group
Barnes Group Insider Transactions Over The Last Year
Notably, that recent purchase by Thomas Hook is the biggest insider purchase of Barnes Group shares that we’ve seen in the last year. So it’s clear an insider wanted to buy, at around the current price, which is US$37.31. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the Barnes Group insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 28.92k shares for US$1.0m. But insiders sold 5.00k shares worth US$161k. Overall, Barnes Group insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does Barnes Group 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. It appears that Barnes Group insiders own 4.3% of the company, worth about US$81m. 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 Does This Data Suggest About Barnes Group Insiders?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Barnes Group shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Barnes Group. For example – Barnes Group has 3 warning signs we think you should be aware of.
Of course Barnes Group 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.
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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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