Pleasing Signs As A Number Of Insiders Buy Wärtsilä Oyj Abp Stock

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Wärtsilä Oyj Abp (HEL:WRT1V), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Wärtsilä Oyj Abp

Wärtsilä Oyj Abp Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by President Hakan Agnevall for €399k worth of shares, at about €8.87 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of €11.43. 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 Wärtsilä Oyj Abp insiders were buying shares, but not selling. 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!

Wärtsilä Oyj Abp is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. Wärtsilä Oyj Abp insiders own about €97m worth of shares (which is 1.4% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Wärtsilä Oyj Abp Tell Us?

It doesn't really mean much that no insider has traded Wärtsilä Oyj Abp shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Wärtsilä Oyj Abp and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Wärtsilä Oyj Abp and understanding it should be part of your investment process.

But note: Wärtsilä Oyj Abp 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.