Need To Know: WPP AUNZ Limited (ASX:WPP) Insiders Have Been Buying Shares

It is not uncommon to see companies perform well in the years after insiders buy shares. 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 WPP AUNZ Limited (ASX:WPP), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

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, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for WPP AUNZ

The Last 12 Months Of Insider Transactions At WPP AUNZ

Over the last year, we can see that the biggest insider sale was by the Executive Chairman of Media Investment Mgmt, John Steedman, for AU$193k worth of shares, at about AU$0.60 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.30. So it may not shed much light on insider confidence at current levels. John Steedman was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 1.27m shares worth AU$471k. But they sold 320.00k shares for AU$193k. In total, WPP AUNZ insiders bought more than they sold over the last year. They paid about AU$0.37 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

WPP AUNZ Insiders Bought Stock Recently

It's good to see that WPP AUNZ insiders have made notable investments in the company's shares. Overall, two insiders shelled out AU$206k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership of WPP AUNZ

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, WPP AUNZ insiders have about 0.7% of the stock, worth approximately AU$1.8m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At WPP AUNZ Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on WPP AUNZ stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for WPP AUNZ you should know about.

Of course WPP AUNZ may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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