Despite Hitting AU$0.17, Seven West Media Insiders Still Sold Too Soon

Seven West Media Limited's (ASX:SWM) value has fallen 13% in the last week, but insiders who sold AU$351k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of AU$0.23 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Seven West Media

Seven West Media Insider Transactions Over The Last Year

The insider, James Warburton, made the biggest insider sale in the last 12 months. That single transaction was for AU$351k worth of shares at a price of AU$0.23 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.17. So it is hard to draw any strong conclusion from it. James Warburton was the only individual insider to sell over the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Seven West Media

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Seven West Media insiders own 4.4% of the company, worth about AU$11m. We do generally prefer see higher levels of insider ownership.

So What Do The Seven West Media Insider Transactions Indicate?

The fact that there have been no Seven West Media insider transactions recently certainly doesn't bother us. Still, the insider transactions at Seven West Media in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. While it's good to be aware of 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. Every company has risks, and we've spotted 3 warning signs for Seven West Media (of which 2 are potentially serious!) you should know about.

But note: Seven West Media may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com