Yahoo Finance Have Insiders Been Buying Watford Holdings Ltd. (NASDAQ:WTRE) Shares This Year?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Watford Holdings Ltd. (NASDAQ:WTRE).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
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View our latest analysis for Watford Holdings
The Last 12 Months Of Insider Transactions At Watford Holdings
In the last twelve months, the biggest single purchase by an insider was when Director Nicolas Alain Papadopoulo bought US$499k worth of shares at a price of US$25.00 per share. That means that an insider was happy to buy shares at around the current price of US$25.88. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Watford Holdings insiders decided to buy shares at close to current prices.
In the last twelve months insiders paid US$1.7m for 65846 shares purchased. Watford Holdings may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Watford Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Watford Holdings Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Watford Holdings. Not only was there no selling that we can see, but they collectively bought US$1.7m worth of shares. This is a positive in our book as it implies some confidence.
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. Based on our data, Watford Holdings insiders have about 0.8% of the stock, worth approximately US$5.0m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Watford Holdings Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Watford Holdings insiders are expecting a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Watford Holdings.
But note: Watford Holdings 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.
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.
