Yahoo Finance Insider Spends UK£58k Buying More Shares In Naked Wines
Whilst it may not be a huge deal, we thought it was good to see that the Naked Wines plc (LON:WINE) Independent Director, Jack Pailing, recently bought UK£58k worth of stock, for UK£0.63 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 24%.
Check out our latest analysis for Naked Wines
Naked Wines Insider Transactions Over The Last Year
Notably, that recent purchase by Jack Pailing is the biggest insider purchase of Naked Wines shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of UK£0.58. 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. 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.
In the last twelve months insiders purchased 222.89k shares for UK£190k. But insiders sold 26.65k shares worth UK£32k. In the last twelve months there was more buying than selling by Naked Wines insiders. The average buy price was around UK£0.85. These transactions suggest that insiders have considered the current price attractive. 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!
Naked Wines is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Naked Wines 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From what we can see in our data, insiders own only about UK£244k worth of Naked Wines shares. This level of insider ownership is notably low, and not very encouraging.
So What Does This Data Suggest About Naked Wines Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Naked Wines insiders are expecting 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. At Simply Wall St, we found 2 warning signs for Naked Wines that deserve your attention before buying any shares.
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
