Insider Buying

Insider Buying Report: BARR (AG) PLC (BAG: LN)



A.G. Barr Plc is UK based company involved in manufacturing of soft drinks. The company deals in carbonates, cocktail solution, juices, still drinks and water. The stock is part of FTSE 250 and currently has a market capitalisation of about £740.64 million with Price Earning ratio of 19.87. 

The Barr Plc share price dropped by more than 30% to 669p from 869p on 16th July 2019 after the Group had issued warning on its profits for the year. The Scottish soft drink manufacturer had reported that profits could decline by up to 20% after the Group had enjoyed higher profits in 2018. The Group has claimed that one of the factors leading to the fall in profits is the change in tastes of its drinks post introduction of Sugar Tax by the government. Whilst it continues to expand product portfolio by launching new drinks which complies with exemption if sugar tax, Mr White, the CEO believes that the impact on financial performance is rather short term. However, it is believed that actions taken to counter the issue won’t result until later in the second half of the financial year.


Source: 2iQ Research

Reporting the recent insider activities, it seems that insiders are quite confident that the decline is short term. Significantly, finance director, Mr Stuart Lorimer bought approximately 10,400 shares worth £65,000 on 22nd and 23rd of July. The shares were bought post-fall of share price which adds to about 21% of his previous holdings. As Mr Lorimer has been a part of  Barr Plc for the past four and a half years the investment from the Finance Director would mean A.G. Barr Plc management is confident of the stock price hitting the higher threshold again.

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