Over the last year, a good number of insiders have significantly increased their holdings in Wotso Property (ASX:WOT). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Wotso Property
The Last 12 Months Of Insider Transactions At Wotso Property
Over the last year, we can see that the biggest insider purchase was by insider J. R. Tresidder for AU$1.8m worth of shares, at about AU$1.32 per share. That means that even when the share price was higher than AU$1.14 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 2.71m shares for AU$3.6m. On the other hand they divested 10.00k shares, for AU$14k. Overall, Wotso Property insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Wotso Property is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Wotso Property Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Wotso Property. Chairman of Blackwall Fund Services Limited Joseph Glew bought AU$62k 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 Wotso Property
For a common shareholder, it is worth checking how many shares are held by company 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. Wotso Property insiders own about AU$39m worth of shares. That equates to 21% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.