Yahoo Finance Fazal Merchant Is The Independent Director of Warner Bros. Discovery, Inc. (NASDAQ:WBD) And They Just Picked Up 217% More Shares
Potential Warner Bros. Discovery, Inc. (NASDAQ:WBD) shareholders may wish to note that the Independent Director, Fazal Merchant, recently bought US$495k worth of stock, paying US$14.13 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 217%.
Check out our latest analysis for Warner Bros. Discovery
Warner Bros. Discovery Insider Transactions Over The Last Year
The Independent Director Robert Bennett made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$19.00 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$13.10). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Warner Bros. Discovery insiders bought shares during the last year, they didn't sell. Their average price was about US$17.06. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Warner Bros. Discovery insiders own 1.4% of the company, currently worth about US$431m 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.
So What Does This Data Suggest About Warner Bros. Discovery Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Warner Bros. Discovery insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Warner Bros. Discovery. In terms of investment risks, we've identified 2 warning signs with Warner Bros. Discovery and understanding these should be part of your investment process.
But note: Warner Bros. Discovery 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.
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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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