Yahoo Finance Insider Stock Buying Reaches AU$1.21m On Rubicon Water
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Rubicon Water Limited's (ASX:RWL) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Rubicon Water
The Last 12 Months Of Insider Transactions At Rubicon Water
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Gordon Dickinson bought AU$698k worth of shares at a price of AU$0.62 per share. That means that an insider was happy to buy shares at above the current price of AU$0.49. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Rubicon Water insiders may have bought shares in the last year, but they didn't sell any. 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!
Rubicon Water 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.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 34% of Rubicon Water shares, worth about AU$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Rubicon Water Tell Us?
It doesn't really mean much that no insider has traded Rubicon Water shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Rubicon Water insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rubicon Water. Be aware that Rubicon Water is showing 3 warning signs in our investment analysis, and 2 of those are significant...
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
