We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Neways Electronics International N.V. (AMS:NEWAY).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Neways Electronics International
Neways Electronics International Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by COO & Director Adrie A. van Bragt for €107k worth of shares, at about €7.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of €12.90. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Adrie A. van Bragt divested 22000 shares over the last 12 months at an average price of €13.29. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Neways Electronics International Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From what we can see in our data, insiders own only about €841k worth of Neways Electronics International shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The Neways Electronics International Insider Transactions Indicate?
The fact that there have been no Neways Electronics International insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Neways Electronics International insiders. And usually insiders own more stock in the company, according to our data. Of course, the future is what matters most. So if you are interested in Neways Electronics International, you should check out this free report on analyst forecasts for the company.