Potential J D Wetherspoon plc (LON:JDW) shareholders may wish to note that the Non-Executive Chairman, Timothy Martin, recently bought UK£180k worth of stock, paying UK£9.00 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At J D Wetherspoon
In fact, the recent purchase by Timothy Martin was the biggest purchase of J D Wetherspoon shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of UK£9.00 per share to be enticing. 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. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for J D Wetherspoon share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid UK£366k for 42.55k shares. But they sold 7970 shares for UK£102k. In total, J D Wetherspoon insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Does J D Wetherspoon Boast High 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. We usually like to see fairly high levels of insider ownership. J D Wetherspoon insiders own about UK£298m worth of shares (which is 28% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About J D Wetherspoon Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about J D Wetherspoon. That’s what I like to see! While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We’ve spotted 2 warning signs for J D Wetherspoon you should be aware of, and 1 of these can’t be ignored.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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