Insiders At Rubicon Water See Good Returns After Buying Stock Worth AU$8.89m

Insiders who bought Rubicon Water Limited (ASX:RWL) stock lover the last 12 months are probably not as affected by last week’s 14% loss. After taking the recent loss into consideration, the AU$8.89m worth of stock they bought is now worth AU$10.9m, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Rubicon Water

The Last 12 Months Of Insider Transactions At Rubicon Water

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman Gordon Dickinson for AU$5.7m worth of shares, at about AU$0.25 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.30), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Rubicon Water insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Rubicon Water is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Rubicon Water Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Rubicon Water insiders own about AU$29m worth of shares. That equates to 39% 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.

So What Does This Data Suggest About Rubicon Water Insiders?

The fact that there have been no Rubicon Water insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Rubicon Water and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for Rubicon Water (1 is potentially serious) you should be aware of.

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 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.