Bullish Endeavour Group Insiders Loaded Up On AU$1.20m Of Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Endeavour Group Limited's (ASX:EDV) instance, it's good 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 do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Endeavour Group

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Ari Mervis for AU$641k worth of shares, at about AU$4.27 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$4.02). 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Endeavour 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Endeavour Group

Endeavour Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Endeavour Group Have Bought Stock Recently

Over the last quarter, Endeavour Group insiders have spent a meaningful amount on shares. We can see that Independent Director Penelope Winn paid AU$200k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Insider Ownership Of Endeavour Group

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Endeavour Group insiders own 15% of the company, worth about AU$1.1b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Endeavour Group Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Endeavour Group. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Endeavour Group you should know about.

Of course Endeavour Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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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.