Don't Ignore The Insider Selling In NZ Automotive Investments \

We note that the NZ Automotive Investments Limited (NZSE:NZA) Co-Founder & Non Independent Executive Director, Eugene Williams, recently sold NZ$134k worth of stock for NZ$0.25 per share. However we note that the sale only shrunk their holding by 3.5%.

View our latest analysis for NZ Automotive Investments

NZ Automotive Investments Insider Transactions Over The Last Year

Notably, that recent sale by Eugene Williams is the biggest insider sale of NZ Automotive Investments shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of NZ$0.32. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last twelve months insiders purchased 118.18k shares for NZ$43k. But insiders sold 542.56k shares worth NZ$134k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. NZ Automotive Investments insiders own 66% of the company, currently worth about NZ$9.6m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About NZ Automotive Investments Insiders?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for NZ Automotive Investments (of which 2 are potentially serious!) you should know about.

But note: NZ Automotive Investments 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, but not derivative transactions.

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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.