Yahoo Finance MD & Executive Director John Guscic Just Bought Shares In Webjet Limited (ASX:WEB)
Investors who take an interest in Webjet Limited (ASX:WEB) should definitely note that the MD & Executive Director, John Guscic, recently paid AU$11.33 per share to buy AU$397k worth of the stock. Although the purchase only increased their holding by 0.5%, it is still a solid purchase in our view.
See our latest analysis for Webjet
The Last 12 Months Of Insider Transactions At Webjet
Notably, that recent purchase by MD & Executive Director John Guscic was not the only time they bought Webjet shares this year. They previously made an even bigger purchase of AU$2.9m worth of shares at a price of AU$11.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$11.40). 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Webjet insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by 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!
Webjet is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Webjet insiders own 12% of the company, currently worth about AU$186m 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 Does This Data Suggest About Webjet Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Webjet. Nice! Of course, the future is what matters most. So if you are interested in Webjet, you should check out this free report on analyst forecasts for the company.
But note: Webjet 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
