When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in WIA Gold Limited’s (ASX:WIA) instance, it’s good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
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The Last 12 Months Of Insider Transactions At WIA Gold
The insider Josef El-Raghy made the biggest insider purchase in the last 12 months. That single transaction was for AU$215k worth of shares at a price of AU$0.039 each. That means that an insider was happy to buy shares at around the current price of AU$0.04. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for WIA Gold share holders is that insiders were buying at near the current price.
In the last twelve months WIA Gold insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
WIA Gold is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At WIA Gold Have Bought Stock Recently
There was some insider buying at WIA Gold over the last quarter. Non-Executive Director Mark Arnesen purchased AU$22k worth of shares in that period. It’s good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership Of WIA Gold
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 our data, it seems that WIA Gold insiders own 15% of the company, worth about AU$5.4m. However, it’s possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Does This Data Suggest About WIA Gold Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it’d be more encouraging if WIA Gold insiders bought more shares in the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing WIA Gold. For instance, we’ve identified 5 warning signs for WIA Gold (4 don’t sit too well with us) you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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