Trade Alert: The Independent Non-Executive Chairman Of Watches of Switzerland Group plc (LON:WOSG), Ian Carter, Has Just Spent UK£100k Buying 25% More Shares

Investors who take an interest in Watches of Switzerland Group plc (LON:WOSG) should definitely note that the Independent Non-Executive Chairman, Ian Carter, recently paid UK£11.46 per share to buy UK£100k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 25%.

See our latest analysis for Watches of Switzerland Group

The Last 12 Months Of Insider Transactions At Watches of Switzerland Group

Over the last year, we can see that the biggest insider sale was by the insider, Lars Anders Romberg, for UK£7.2m worth of shares, at about UK£7.25 per share. That means that even when the share price was below the current price of UK£11.41, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 38% of Lars Anders Romberg's holding. Lars Anders Romberg was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid UK£273k for 24.08k shares. But insiders sold 1.34m shares worth UK£12m. Lars Anders Romberg ditched 1.34m shares over the year. The average price per share was UK£9.09. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Watches of Switzerland Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Watches of Switzerland Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Watches of Switzerland Group insiders own 3.8% of the company, currently worth about UK£103m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Watches of Switzerland Group Insider Transactions Indicate?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Watches of Switzerland Group. In terms of investment risks, we've identified 1 warning sign with Watches of Switzerland Group and understanding it should be part of your investment process.

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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. 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.