Yahoo Finance Gowing Bros Insiders Added AU$5.6m Of Stock To Their Holdings
Over the last year, a good number of insiders have significantly increased their holdings in Gowing Bros. Limited (ASX:GOW). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Gowing Bros
The Last 12 Months Of Insider Transactions At Gowing Bros
In fact, the recent purchase by Philip Feitelson was the biggest purchase of Gowing Bros shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$2.44). 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Gowing Bros insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insiders At Gowing Bros Have Bought Stock Recently
It's good to see that Gowing Bros insiders have made notable investments in the company's shares. Overall, two insiders shelled out AU$5.6m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Gowing Bros insiders own 47% of the company, worth about AU$61m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Gowing Bros Tell Us?
The recent insider purchases are heartening. 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 Gowing Bros. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gowing Bros. When we did our research, we found 5 warning signs for Gowing Bros (1 is a bit concerning!) that we believe deserve your full attention.
Of course Gowing Bros 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.
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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.
