Blair Turnbull Buys 23% More Tower Shares

Investors who take an interest in Tower Limited (NZSE:TWR) should definitely note that insider Blair Turnbull recently paid NZ$1.48 per share to buy NZ$429k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 23%.

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Tower Insider Transactions Over The Last Year

Notably, that recent purchase by Blair Turnbull is the biggest insider purchase of Tower shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is NZ$1.51. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Tower share holders is that an insider was buying at near the current price. Blair Turnbull was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Tower

Tower is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Tower Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Tower insiders have about 0.6% of the stock, worth approximately NZ$3.2m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

What Might The Insider Transactions At Tower Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. 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 Tower stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Tower you should be aware of, and 1 of these is significant.

Of course Tower 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.