Insider Buying: The Naked Wines plc (LON:WINE) Independent Non-Executive Director Just Bought UK£128k Worth Of Shares

By
Simply Wall St
Published
July 25, 2021
AIM:WINE
Source: Shutterstock

Investors who take an interest in Naked Wines plc (LON:WINE) should definitely note that the Independent Non-Executive Director, Darryl Graham Rawlings, recently paid UK£8.06 per share to buy UK£128k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Naked Wines

The Last 12 Months Of Insider Transactions At Naked Wines

The Non-Executive Director, Justin Apthorp, made the biggest insider sale in the last 12 months. That single transaction was for UK£590k worth of shares at a price of UK£5.90 each. That means that an insider was selling shares at slightly below the current price (UK£8.59). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 67% of Justin Apthorp's holding. The only individual insider seller over the last year was Justin Apthorp.

Over the last year, we can see that insiders have bought 42.39k shares worth UK£249k. But they sold 100.00k shares for UK£590k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
AIM:WINE Insider Trading Volume July 25th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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 0.3% of the company, worth about UK£1.6m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

So What Do The Naked Wines Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. Of course, the future is what matters most. So if you are interested in Naked Wines, you should check out this free report on analyst forecasts for the company.

Of course Naked Wines may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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