J D Wetherspoon Insiders Placed Bullish Bets Worth UK£12.0m

In the last year, multiple insiders have substantially increased their holdings of J D Wetherspoon plc (LON:JDW) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for J D Wetherspoon

The Last 12 Months Of Insider Transactions At J D Wetherspoon

The Executive Chairman Timothy Martin made the biggest insider purchase in the last 12 months. That single transaction was for UK£12m worth of shares at a price of UK£4.57 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£7.33. 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.

In the last twelve months insiders purchased 2.62m shares for UK£12m. But insiders sold 18.00k shares worth UK£140k. Overall, J D Wetherspoon insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At J D Wetherspoon Have Bought Stock Recently

Over the last quarter, J D Wetherspoon insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought UK£70k worth of shares. That shows some optimism about the company's future.

Does J D Wetherspoon Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. J D Wetherspoon insiders own 26% of the company, currently worth about UK£236m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About J D Wetherspoon Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about J D Wetherspoon. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing J D Wetherspoon. At Simply Wall St, we've found that J D Wetherspoon has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

Of course J D Wetherspoon 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 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.