How Many Spark New Zealand Limited (NZSE:SPK) Shares Did Insiders Buy, In The Last Year?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Spark New Zealand Limited (NZSE:SPK).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Spark New Zealand

The Last 12 Months Of Insider Transactions At Spark New Zealand

Over the last year, we can see that the biggest insider sale was by the Technology Director, Mark Beder, for NZ$463k worth of shares, at about NZ$4.63 per share. That means that an insider was selling shares at slightly below the current price (NZ$4.84). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 27% of Mark Beder's holding. Mark Beder was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 101.80k shares for NZ$475k. But they sold 100.00k shares for NZ$463k. Overall, Spark New Zealand insiders were net buyers during the last year. 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!

Spark New Zealand is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own NZ$6.7m worth of Spark New Zealand stock, about 0.07% of the company. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Spark New Zealand Tell Us?

The fact that there have been no Spark New Zealand insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Spark New Zealand insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spark New Zealand. To help with this, we've discovered 2 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Spark New Zealand.

Of course Spark New Zealand 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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