Yahoo Finance Bullish Peter Warren Automotive Holdings Limited (ASX:PWR) insiders filled their treasuries with AU$13m worth of stock over last year
Over the last year, a good number of insiders have significantly increased their holdings in Peter Warren Automotive Holdings Limited (ASX:PWR). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Peter Warren Automotive Holdings
Peter Warren Automotive Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Director Paul Warren bought AU$10m worth of shares at a price of AU$2.55 per share. We do like to see buying, but this purchase was made at well below the current price of AU$2.90. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Peter Warren Automotive Holdings insiders bought shares during the last year, they didn't sell. 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!
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.
Insiders At Peter Warren Automotive Holdings Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Peter Warren Automotive Holdings. Executive Director Paul Warren spent AU$255k on stock, and there wasn't any selling. That shows some optimism about the company's future.
Insider Ownership
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Peter Warren Automotive Holdings insiders own 41% of the company, currently worth about AU$205m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Peter Warren Automotive Holdings Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Peter Warren Automotive Holdings insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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 4 warning signs for Peter Warren Automotive Holdings you should be aware of, and 1 of these is a bit unpleasant.
Of course Peter Warren Automotive Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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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