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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 WasteCo Group Limited (NZSE:WCO), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for WasteCo Group
The Last 12 Months Of Insider Transactions At WasteCo Group
The CEO & Director James Redmayne made the biggest insider purchase in the last 12 months. That single transaction was for NZ$200k worth of shares at a price of NZ$0.065 each. That means that an insider was happy to buy shares at above the current price of NZ$0.038. 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. 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 WasteCo Group insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
WasteCo Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider 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. WasteCo Group insiders own 59% of the company, currently worth about NZ$19m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About WasteCo Group Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, WasteCo Group insiders feel good about the company's future. 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. Be aware that WasteCo Group is showing 4 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...