With Wide Open Agriculture Up 18%, Insider Buyers Count Their Returns

Wide Open Agriculture Limited (ASX:WOA) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 18% resulting in a AU$2.1m addition to the company’s market value. As a result, the stock they originally bought for AU$140.0k is now worth AU$182.0k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Our free stock report includes 6 warning signs investors should be aware of before investing in Wide Open Agriculture. Read for free now.

Wide Open Agriculture Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Liam Cornelius bought AU$140k worth of shares at a price of AU$0.02 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.026. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Wide Open Agriculture

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Wide Open Agriculture Have Sold Stock Recently

We have seen a bit of insider selling at Wide Open Agriculture, over the last three months. insider Liam Cornelius sold just AU$70k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Wide Open Agriculture insiders own about AU$4.5m worth of shares. That equates to 32% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Wide Open Agriculture Insider Transactions Indicate?

An insider hasn't bought Wide Open Agriculture stock in the last three months, but there was some selling. But we take heart from prior transactions. And insiders do own shares. So the recent selling doesn't worry us too much. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Wide Open Agriculture has 6 warning signs and it would be unwise to ignore these.

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 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.