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In the last year, multiple insiders have substantially increased their holdings of Gowing Bros. Limited (ASX:GOW) stock, indicating that insiders' optimism about the company's prospects has increased.
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.
Our free stock report includes 4 warning signs investors should be aware of before investing in Gowing Bros. Read for free now.
The Last 12 Months Of Insider Transactions At Gowing Bros
In the last twelve months, the biggest single purchase by an insider was when insider Philip Feitelson bought AU$1.2m worth of shares at a price of AU$2.29 per share. That means that an insider was happy to buy shares at above the current price of AU$2.16. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Gowing Bros insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Gowing Bros
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Gowing Bros insiders own about AU$60m worth of shares (which is 52% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Gowing Bros Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Gowing Bros insiders feel good about the company's future. 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 4 warning signs for Gowing Bros (of which 3 are a bit unpleasant!) you should know about.