Yahoo Finance Insiders saw their AU$33m investment bump up to AU$50m after Toys'R'Us Anz Limited (ASX:TOY) soared 17% last week
Toys'R'Us Anz Limited (ASX:TOY) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 17% resulting in a AU$21m addition to the company’s market value. As a result, the stock they originally bought for AU$33m is now worth AU$50m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Toys'R'Us Anz
The Last 12 Months Of Insider Transactions At Toys'R'Us Anz
In the last twelve months, the biggest single purchase by an insider was when MD & CEO Louis Mittoni bought AU$33m worth of shares at a price of AU$0.11 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.17. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Toys'R'Us Anz insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Toys'R'Us Anz 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.
Have Toys'R'Us Anz Insiders Traded Recently?
We saw some Toys'R'Us Anz insider buying shares in the last three months. Independent Chairman Kevin Moore purchased AU$8.9k worth of shares in that period. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
Does Toys'R'Us Anz Boast High 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. Toys'R'Us Anz insiders own 41% of the company, currently worth about AU$59m 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.
So What Do The Toys'R'Us Anz Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Toys'R'Us Anz insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Toys'R'Us Anz. To help with this, we've discovered 2 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Toys'R'Us Anz.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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