- Metals and Mining
GWR Group Limited (ASX:GWR) insiders have a reason to boast after seeing a AU$315k addition to their AU$760k investment
GWR Group Limited (ASX:GWR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 57% resulting in a AU$12m addition to the company’s market value. Put another way, the original AU$760k acquisition is now worth AU$1.1m.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for GWR Group
The Last 12 Months Of Insider Transactions At GWR Group
The Director Teck Siong Wong made the biggest insider purchase in the last 12 months. That single transaction was for AU$760k worth of shares at a price of AU$0.07 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.099. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
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 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).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 appears that GWR Group insiders own 33% of the company, worth about AU$10m. 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 Does This Data Suggest About GWR Group Insiders?
It doesn't really mean much that no insider has traded GWR Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think GWR Group insiders are doubting the company, and they do own shares. 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 4 warning signs for GWR Group (of which 2 are a bit concerning!) you should know about.
Of course GWR 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, but not derivative transactions.
Valuation is complex, but we're helping make it simple.
Find out whether GWR Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
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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.
GWR Group Limited explores for, develops, and evaluates mining projects in Australia.
Adequate balance sheet and slightly overvalued.