Yahoo Finance Positive Signs As Multiple Insiders Buy Watches of Switzerland Group Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Watches of Switzerland Group plc's (LON:WOSG) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Watches of Switzerland Group
Watches of Switzerland Group Insider Transactions Over The Last Year
Notably, that recent purchase by Ian Carter is the biggest insider purchase of Watches of Switzerland Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is UK£3.94. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Watches of Switzerland Group insiders decided to buy shares at close to current prices.
While Watches of Switzerland Group insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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.
Watches of Switzerland Group Insiders Bought Stock Recently
Over the last quarter, Watches of Switzerland Group insiders have spent a meaningful amount on shares. Specifically, Independent Non-Executive Chairman Ian Carter bought UK£188k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
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. We usually like to see fairly high levels of insider ownership. Watches of Switzerland Group insiders own about UK£31m worth of shares. That equates to 3.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Watches of Switzerland Group Insider Transactions Indicate?
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 Watches of Switzerland Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Watches of Switzerland Group. Case in point: We've spotted 1 warning sign for Watches of Switzerland Group you should be aware of.
But note: Watches of Switzerland Group 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 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.
