Temple & Webster Group Insider Buyers See Boost After Market Cap Rose AU$78m \

Last week, Temple & Webster Group Ltd (ASX:TPW) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 17% last week, resulting in a AU$78m increase in the company's market worth. As a result, the stock they originally bought for AU$11m is now worth AU$14m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Temple & Webster Group

The Last 12 Months Of Insider Transactions At Temple & Webster Group

The insider Angela Riley made the biggest insider purchase in the last 12 months. That single transaction was for AU$3.6m worth of shares at a price of AU$3.62 each. Even though the purchase was made at a significantly lower price than the recent price (AU$4.50), we still think insider buying is a positive. 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.

While Temple & Webster Group 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!

Temple & Webster Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Temple & Webster Group Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Temple & Webster Group. Not only was there no selling that we can see, but they collectively bought AU$4.5m worth of shares. This makes one think the business has some good points.

Does Temple & Webster Group Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. Temple & Webster Group insiders own about AU$67m worth of shares. That equates to 12% 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.

What Might The Insider Transactions At Temple & Webster Group Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Temple & Webster Group shares, given these transactions (along with notable insider ownership of the company). To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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, but not derivative transactions.

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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.