This Insider Has Just Sold Shares In NZME

Investors may wish to note that the Chief Financial Officer of NZME Limited, David Mackrell, recently netted NZ$95k from selling stock, receiving an average price of NZ$0.95. It wasn't a huge sale, but it did reduce their holding by 18%. This does not instill confidence.

Check out our latest analysis for NZME

The Last 12 Months Of Insider Transactions At NZME

In fact, the recent sale by David Mackrell was the biggest sale of NZME shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (NZ$0.99). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 18% of David Mackrell's holding.

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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does NZME 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. From looking at our data, insiders own NZ$4.8m worth of NZME stock, about 2.6% of the company. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About NZME Insiders?

An insider sold NZME shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! While it's good to be aware of 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. Every company has risks, and we've spotted 2 warning signs for NZME you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.