Even if it's not a huge purchase, we think it was good to see that Laurence Tarica, the Independent Director of Gannett Co., Inc. (NYSE:GCI) recently shelled out US$84k to buy stock, at US$0.98 per share. That purchase might not be huge but it did increase their holding by 50%.
Gannett Insider Transactions Over The Last Year
insider Leon Cooperman made the biggest insider purchase in the last 12 months. That single transaction was for US$10.0m worth of shares at a price of US$10.75 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.95). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Gannett insiders bought shares during the last year, they didn't sell. The average buy price was around US$8.53. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by 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. Our data indicates that Gannett insiders own about US$5.6m worth of shares (which is 4.5% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Gannett Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Gannett insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 3 warning signs for Gannett (2 are potentially serious) you should be aware of.
But note: Gannett may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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