Yahoo Finance How Many Insiders Bought Worldsec Limited (LON:WSL) Shares?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Worldsec Limited (LON:WSL).
Do Insider Transactions Matter?
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, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for Worldsec
The Last 12 Months Of Insider Transactions At Worldsec
In the last twelve months, the biggest single purchase by an insider was when Deputy Chairman Ying Chew Cheong bought UK£2.1m worth of shares at a price of UK£0.11 per share. That means that an insider was happy to buy shares at above the current price. 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. That purchase may suggest an expectation of positive returns over the long term.
Happily, we note that in the last year insiders bought 19.67m shares for a total of UK£2.1m. In total, Worldsec insiders bought more than they sold over the last year. They paid about UK£0.11 on average. I’d consider this a positive as it suggests insiders see value at around the current price, which is UK£0.048. You can see a visual depiction of insider transactions over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Worldsec Boast High 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. Worldsec insiders own about UK£1.9m worth of shares (which is 47% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Worldsec Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Worldsec shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Worldsec insiders are reasonably well aligned (owning significant chunk of the company’s shares) and optimistic for the future. Along with insider transactions, I recommend checking if Worldsec is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Worldsec 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
