Yahoo Finance Insiders rewarded with a AU$366k addition on top of their AU$1.6m purchase as Temple & Webster Group Ltd (ASX:TPW) hits AU$547m
Insiders who bought Temple & Webster Group Ltd (ASX:TPW) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$89m as a result of the stock's 19% gain over the same period. As a result, the stock they originally bought for AU$1.6m is now worth AU$2.0m.
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.
Check out our latest analysis for Temple & Webster Group
The Last 12 Months Of Insider Transactions At Temple & Webster Group
In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Mark Coulter, sold AU$1.4m worth of shares at a price of AU$13.36 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$4.54). So it may not tell us anything about how insiders feel about the current share price. Mark Coulter was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid AU$1.6m for 434.42k shares. On the other hand they divested 108.16k shares, for AU$1.4m. In total, Temple & Webster Group insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Temple & Webster Group 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.
Temple & Webster Group Insiders Bought Stock Recently
It's good to see that Temple & Webster Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$1.4m worth of shares. That shows some optimism about the company's future.
Insider Ownership Of Temple & Webster Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Temple & Webster Group insiders own 14% of the company, worth about AU$75m. 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 Temple & Webster Group Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Temple & Webster Group shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Temple & Webster Group you should be aware of.
But note: Temple & Webster Group 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.
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.
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