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Tamawood Limited (ASX:TWD) shareholders (or potential shareholders) will be happy to see that the Non-Executive Director, Lev Mizikovsky, recently bought a whopping AU$10m worth of stock, at a price of AU$2.89. Not only is that a big swing, but it increased their holding size by 22%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Tamawood
Notably, that recent purchase by Lev Mizikovsky is the biggest insider purchase of Tamawood shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$3.04. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Tamawood insider decided to buy shares at close to current prices. Lev Mizikovsky was the only individual insider to buy shares in the last twelve months. We note that Lev Mizikovsky was also the biggest seller.
Lev Mizikovsky purchased 3.59m shares over the year. The average price per share was AU$2.89. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Tamawood is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tamawood insiders own about AU$55m worth of shares (which is 52% of the company). 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 Tamawood Insiders?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tamawood. One for the watchlist, at least! 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 5 warning signs for Tamawood (3 are potentially serious) you should be aware of.
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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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.