Yahoo Finance Trade Alert: The Independent Chairman Of Air New Zealand Limited (NZSE:AIR), Therese Walsh, Has Just Spent NZ$118k Buying 30% More Shares
Even if it's not a huge purchase, we think it was good to see that Therese Walsh, the Independent Chairman of Air New Zealand Limited (NZSE:AIR) recently shelled out NZ$118k to buy stock, at NZ$0.78 per share. That purchase might not be huge but it did increase their holding by 30%.
View our latest analysis for Air New Zealand
Air New Zealand Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Executive Officer Gregory Foran bought NZ$1.5m worth of shares at a price of NZ$0.57 per share. We do like to see buying, but this purchase was made at well below the current price of NZ$0.81. 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.
In the last twelve months insiders purchased 6.12m shares for NZ$3.9m. On the other hand they divested 88.64k shares, for NZ$112k. In the last twelve months there was more buying than selling by Air New Zealand insiders. They paid about NZ$0.64 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Air New Zealand
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.6% of Air New Zealand shares, worth about NZ$17m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Air New Zealand Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Air New Zealand we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Air New Zealand and we suggest you have a look.
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, but not derivative transactions.
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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.
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