Independent Director of Naked Wines Jack Pailing Buys 23% More Shares

Potential Naked Wines plc (LON:WINE) shareholders may wish to note that the Independent Director, Jack Pailing, recently bought UK£120k worth of stock, paying UK£0.52 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 23%.

See our latest analysis for Naked Wines

Naked Wines Insider Transactions Over The Last Year

Notably, that recent purchase by Jack Pailing is the biggest insider purchase of Naked Wines shares that we've seen in the last year. That implies that an insider found the current price of UK£0.55 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Naked Wines share holders is that insiders were buying at near the current price.

In the last twelve months Naked Wines insiders were buying shares, but not selling. The average buy price was around UK£0.47. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Naked Wines is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Naked Wines

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data suggests Naked Wines insiders own 4.5% of the company, worth about UK£1.8m. We consider this fairly low insider ownership.

So What Do The Naked Wines Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Naked Wines stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Naked Wines has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.