Insider Spends AU$1.5m Buying More Shares In Peter Warren Automotive Holdings

Peter Warren Automotive Holdings Limited (ASX:PWR) shareholders (or potential shareholders) will be happy to see that the Director, John Eastham, recently bought a whopping AU$1.5m worth of stock, at a price of AU$1.78. That purchase boosted their holding by 94%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for Peter Warren Automotive Holdings

Peter Warren Automotive Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by John Eastham is the biggest insider purchase of Peter Warren Automotive Holdings shares that we've seen in the last year. That implies that an insider found the current price of AU$1.84 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

While Peter Warren Automotive Holdings 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

Insider Ownership Of Peter Warren Automotive Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Peter Warren Automotive Holdings insiders own 42% of the company, worth about AU$125m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Peter Warren Automotive Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Peter Warren Automotive Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Peter Warren Automotive Holdings. At Simply Wall St, we've found that Peter Warren Automotive Holdings has 4 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

But note: Peter Warren Automotive Holdings 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.