In This Article:
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of The Warehouse Group Limited (NZSE:WHS), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Warehouse Group
Warehouse Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Group Chief Executive Officer Nick Grayston for NZ$203k worth of shares, at about NZ$4.10 per share. That means that even when the share price was higher than NZ$3.12 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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.
While Warehouse Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Warehouse Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Warehouse Group Insiders Bought Stock Recently
Over the last quarter, Warehouse Group insiders have spent a meaningful amount on shares. We can see that Group Chief Financial Officer Jonathan Oram paid NZ$96k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Warehouse 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Warehouse Group insiders own 29% of the company, worth about NZ$317m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Warehouse Group Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Warehouse Group. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Warehouse Group you should be aware of.