Insiders who bought AU$253k worth of Baby Bunting Group Limited (ASX:BBN) stock in the last year have seen some of their losses recouped as the stock gained 12% last week. However, total losses seen by insiders are still AU$27k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Baby Bunting Group

The Last 12 Months Of Insider Transactions At Baby Bunting Group

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Gary Levin for AU$108k worth of shares, at about AU$2.71 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$2.16). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.

While Baby Bunting Group insiders bought shares during the last year, they didn't sell. They paid about AU$2.42 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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! insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this freelist of companies. (Hint: insiders have been buying them).

Have Baby Bunting Group Insiders Traded Recently?

Over the last three months, we've seen a bit of insider buying at Baby Bunting Group. Independent Non-Executive Director Francine Ereira bought AU$10k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.



Insider Ownership Of Baby Bunting Group

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. 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 3.6% of Baby Bunting Group shares, worth about AU$10m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Baby Bunting Group Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Baby Bunting Group insiders are doubting the company, and they do own shares. 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. Every company has risks, and we've spotted 2 warning signs for Baby Bunting Group you should know about.

Of course Baby Bunting Group may not be the best stock to buy. So you may wish to see this freecollection 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 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.