Yahoo Finance Great news for Worley Limited (ASX:WOR): Insiders acquired stock in large numbers last year
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Worley Limited (ASX:WOR), that sends out a positive message to the company's shareholders.
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 Worley
Worley Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Deputy Chairman of Board Andrew Liveris for AU$105k worth of shares, at about AU$9.57 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$11.25. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Worley insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$10.82. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!
Worley is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Worley Insiders Bought Stock Recently
Over the last quarter, Worley insiders have spent a meaningful amount on shares. In total, insiders bought AU$93k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Does Worley Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Worley insiders own 3.8% of the company, currently worth about AU$222m based on the recent share price. 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 Worley Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Worley. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Worley. Case in point: We've spotted 3 warning signs for Worley you should be aware of.
But note: Worley 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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
