Have Insiders Been Buying New Zealand King Salmon Investments Limited (NZSE:NZK) Shares This Year?
We often see insiders buying up shares in companies that perform well over the long term. 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 before you buy or sell New Zealand King Salmon Investments Limited (NZSE:NZK), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
See our latest analysis for New Zealand King Salmon Investments
New Zealand King Salmon Investments Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Operating Officer Alan Cook bought NZ$411k worth of shares at a price of NZ$2.38 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being NZ$1.80). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Alan Cook was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of New Zealand King Salmon Investments
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. New Zealand King Salmon Investments insiders own about NZ$20m worth of shares. That equates to 7.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The New Zealand King Salmon Investments Insider Transactions Indicate?
The fact that there have been no New Zealand King Salmon Investments insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in New Zealand King Salmon Investments and their transactions don't cause us concern. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for New Zealand King Salmon Investments.
But note: New Zealand King Salmon Investments 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.
This article by Simply Wall St is general in nature. 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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