U.S. markets open in 7 hours 57 minutes
  • S&P Futures

    4,275.50
    -11.00 (-0.26%)
     
  • Dow Futures

    33,923.00
    -58.00 (-0.17%)
     
  • Nasdaq Futures

    13,482.50
    -40.75 (-0.30%)
     
  • Russell 2000 Futures

    1,993.60
    -8.10 (-0.40%)
     
  • Crude Oil

    90.12
    -0.38 (-0.42%)
     
  • Gold

    1,766.80
    -4.40 (-0.25%)
     
  • Silver

    19.25
    -0.21 (-1.10%)
     
  • EUR/USD

    1.0078
    -0.0014 (-0.14%)
     
  • 10-Yr Bond

    2.8800
    0.0000 (0.00%)
     
  • Vix

    19.56
    -0.34 (-1.71%)
     
  • GBP/USD

    1.1907
    -0.0026 (-0.22%)
     
  • USD/JPY

    136.2600
    +0.3980 (+0.29%)
     
  • BTC-USD

    22,824.63
    -634.79 (-2.71%)
     
  • CMC Crypto 200

    542.63
    -15.10 (-2.71%)
     
  • FTSE 100

    7,541.85
    +26.10 (+0.35%)
     
  • Nikkei 225

    28,925.02
    -17.12 (-0.06%)
     

Quite a few insiders invested in GWA Group Limited (ASX:GWA) last year which is positive news for shareholders

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in GWA Group Limited's (ASX:GWA) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for GWA Group

GWA Group Insider Transactions Over The Last Year

The MD, CEO & Director Urs Meyerhans made the biggest insider purchase in the last 12 months. That single transaction was for AU$155k worth of shares at a price of AU$2.38 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$2.12). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months GWA Group 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!

insider-trading-volume
insider-trading-volume

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).

Does GWA Group Boast High Insider Ownership?

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. Insiders own 5.6% of GWA Group shares, worth about AU$31m. 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 GWA Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders own shares in GWA Group and we see no evidence to suggest they are worried about the 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. You'd be interested to know, that we found 1 warning sign for GWA Group and we suggest you have a look.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here