Although it may not be a major event, we are pleased to see that Darrell Thomas, an insider at the company, recently purchased £66,000 worth of stock at a price of £32.89 per share. While this purchase at this scale does not overly excite us, we did take note that it increased their ownership stake by 43%.
Insider trading in British American Tobacco and Philip Morris International over the past 12 months.
In the past 12 months, the largest single purchase made by an insider was Independent Non-Executive Director Ming Kwan buying shares worth £266,000 at a price of £33.22 per share. This indicates that at least one insider was willing to buy even at a price above the current share price of £32.94. While their perspective may have changed since then, it suggests they were optimistic at the time. We believe the price paid by insiders for shares is crucial information, as a price higher than the current market price is usually more encouraging, as it indicates they see value even at a higher price.
It is pleasing to note that internal personnel paid £429,000 for 13,000 shares last year. However, internal personnel sold 5,060 shares worth £177,000. Overall, internal personnel at British American Tobacco bought more than they sold in the last year. The following chart displays last year's insider trading by company and individual.
Employees holding stocks.
Examining a company's total number of shares held by insiders can provide insight into whether or not they are aligned with ordinary shareholders. Typically, the higher the level of insider ownership, the more likely insiders are incentivized to build the company for the long term. Insiders at British American Tobacco hold shares worth approximately £6.4 billion, representing 8.7% of the company's total shares. Most shareholders would be pleased to see this kind of insider ownership, as it indicates that management's incentives align with those of other shareholders.
What could insider trading at British American Tobacco reveal?
We are pleased to see recent insider purchases and have gained confidence in the long-term prospects of insider trading. Considering the high levels of insider ownership, insiders appear to be bullish on British American Tobacco. This looks promising! While understanding insider behavior in trading is helpful, it's also important to understand the risks that specific companies face. In terms of investment risks, we have identified two warning signs for British American Tobacco that should be a part of your investment process.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
