Bullish SKY Network Television Insiders Loaded Up On NZ$1.22m Of Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in SKY Network Television Limited's (NZSE:SKT) case, it's fantastic news for shareholders.

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.

Check out our latest analysis for SKY Network Television

The Last 12 Months Of Insider Transactions At SKY Network Television

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Philip Bowman for NZ$537k worth of shares, at about NZ$2.70 per share. That implies that an insider found the current price of NZ$2.86 per share to be enticing. 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. Happily, the SKY Network Television insiders decided to buy shares at close to current prices.

In the last twelve months SKY Network Television insiders were buying shares, but not selling. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At SKY Network Television Have Bought Stock Recently

Over the last quarter, SKY Network Television insiders have spent a meaningful amount on shares. Overall, two insiders shelled out NZ$150k for shares in the company -- and none sold. That shows some optimism about the company's future.

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. From looking at our data, insiders own NZ$3.5m worth of SKY Network Television stock, about 0.9% of the company. I generally like to see higher levels of ownership.

So What Does This Data Suggest About SKY Network Television Insiders?

The recent insider purchases are heartening. 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 SKY Network Television stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for SKY Network Television you should be aware of, and 1 of these can't be ignored.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.