Even if it's not a huge purchase, we think it was good to see that David Perlmutter, the Non-Executive Chairman of Weebit Nano Limited (ASX:WBT) recently shelled out AU$80k to buy stock, at AU$0.39 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 16%.
Weebit Nano Insider Transactions Over The Last Year
The insider, Amiram Bornstein, made the biggest insider sale in the last 12 months. That single transaction was for AU$635k worth of shares at a price of AU$0.96 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$0.40. So it may not shed much light on insider confidence at current levels.
Happily, we note that in the last year insiders paid AU$222k for 462377.28 shares. But they sold 2331271.52 for AU$1.6m. Over the last year we saw more insider selling of Weebit Nano shares, than buying. The average sell price was around AU$0.71. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of AU$0.40. You can see the insider transactions (by 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!
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Does Weebit Nano Boast High 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. Insiders own 17% of Weebit Nano shares, worth about AU$4.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Weebit Nano Tell Us?
It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Weebit Nano insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. Along with insider transactions, I recommend checking if Weebit Nano is growing revenue. This free chart of historic revenue and earnings should make that easy.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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, but not derivative transactions.
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