We wouldn't blame Peet Limited (ASX:PPC) shareholders if they were a little worried about the fact that Brendan Gore, the MD, CEO & Director recently netted about AU$1.3m selling shares at an average price of AU$1.30. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.
View our latest analysis for Peet
The Last 12 Months Of Insider Transactions At Peet
Notably, that recent sale by Brendan Gore is the biggest insider sale of Peet shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of AU$1.22. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last twelve months insiders purchased 90.00k shares for AU$107k. On the other hand they divested 1.00m shares, for AU$1.3m. 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!
I will like Peet better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. We usually like to see fairly high levels of insider ownership. Peet insiders own 30% of the company, currently worth about AU$175m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Peet Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Peet stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Peet is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Peet. For example, Peet has 3 warning signs (and 1 which can't be ignored) we think you should know about.
Of course Peet 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.
About ASX:PPC
Second-rate dividend payer low.
