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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in Wangle Technologies Limited (ASX:WGL).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
See our latest analysis for Wangle Technologies
The Last 12 Months Of Insider Transactions At Wangle Technologies
Executive Keaton Wallace made the biggest insider sale in the last 12 months. That single transaction was for AU$500k worth of shares at a price of AU$1.00 each. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is AU$0.002. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Keaton Wallace.
Over the last year, we can see that insiders have bought 4.75m shares worth AU$115k. But insiders sold 3.91m shares worth AU$571k. Keaton Wallace ditched 3.91m shares over the year. The average price per share was AU$0.15. The chart below shows insider transactions over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Wangle Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Have Wangle Technologies Insiders Traded Recently?
We’ve only seen a tiny insider purchase valued at AU$2.0k, in the last three months. Looking at the net result, we don’t think these recent trades shed much light on how insiders, as a group, are feeling about the company’s prospects.
Insider Ownership of Wangle Technologies
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Wangle Technologies insiders own about AU$979k worth of shares (which is 24% 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.