Even if it's not a huge purchase, we think it was good to see that Blair Turnbull, the Chief Executive Officer of Tower Limited (NZSE:TWR) recently shelled out NZ$71k to buy stock, at NZ$0.74 per share. Even though that isn't a massive buy, it did increase their holding by 58%, which is arguably a good sign.
Tower Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Michael Stiassny bought NZ$120k worth of shares at a price of NZ$0.60 per share. That means that an insider was happy to buy shares at around the current price of NZ$0.74. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid NZ$460k for 731.37k shares. On the other hand they divested 18.75k shares, for NZ$11k. In total, Tower insiders bought more than they sold over the last year. 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!
Tower is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Tower Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.7% of Tower shares, worth about NZ$8.4m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Tower Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Tower.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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