Insider Traders Lose NZ$113k As Restaurant Brands New Zealand Drops

Insiders who acquired NZ$242.1k worth of Restaurant Brands New Zealand Limited's (NZSE:RBD) stock at an average price of NZ$6.46 in the past 12 months may be dismayed by the recent 10% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth NZ$129.4k, which is not great.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Restaurant Brands New Zealand

Restaurant Brands New Zealand Insider Transactions Over The Last Year

The Group Chief Executive Officer Arif Khan made the biggest insider purchase in the last 12 months. That single transaction was for NZ$132k worth of shares at a price of NZ$6.59 each. That means that an insider was happy to buy shares at above the current price of NZ$3.45. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Restaurant Brands New Zealand 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. 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).

Does Restaurant Brands New Zealand Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our information indicates that Restaurant Brands New Zealand insiders own about NZ$777k worth of shares. We might be missing something but that seems like very low insider ownership.

So What Do The Restaurant Brands New Zealand Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Restaurant Brands New Zealand shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Restaurant Brands New Zealand stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Restaurant Brands New Zealand. For instance, we've identified 3 warning signs for Restaurant Brands New Zealand (1 makes us a bit uncomfortable) you should be aware of.

But note: Restaurant Brands New Zealand 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.