It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Genworth Mortgage Insurance Australia Limited (ASX:GMA).
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, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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The Last 12 Months Of Insider Transactions At Genworth Mortgage Insurance Australia
While no particular insider transaction stood out, we can still look at the overall trading.
In the last twelve months insiders paid AU$157k for 67372 shares purchased. While Genworth Mortgage Insurance Australia insiders bought shares last year, they didn’t sell. The average buy price was around AU$2.32. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of AU$2.56. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Genworth Mortgage Insurance Australia 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.
Insiders at Genworth Mortgage Insurance Australia Have Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Genworth Mortgage Insurance Australia. Christine Patton shelled out AU$52k for shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
Does Genworth Mortgage Insurance Australia Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Genworth Mortgage Insurance Australia insiders own 0.4% of the company, worth about AU$4.4m. I generally like to see higher levels of ownership.
So What Do The Genworth Mortgage Insurance Australia Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Genworth Mortgage Insurance Australia stock. Of course, the future is what matters most. So if you are interested in Genworth Mortgage Insurance Australia, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. Thank you for reading.