Don't Ignore The Fact That This Insider Just Sold Some Shares In Air New Zealand Limited (NZSE:AIR)

By
Simply Wall St
Published
April 09, 2022
NZSE:AIR
Source: Shutterstock

We note that a Air New Zealand Limited (NZSE:AIR) insider, Carrie Hurihanganui, recently sold NZ$112k worth of stock for NZ$1.26 per share. While that isn't a lot of money, it was a substantial 100% of their holding, so certainly isn't a good sign.

Check out our latest analysis for Air New Zealand

Air New Zealand Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Jeff McDowall, for NZ$430k worth of shares, at about NZ$1.78 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of NZ$0.80. So it is hard to draw any strong conclusion from it.

Air New Zealand insiders didn't buy any shares 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!

insider-trading-volume
NZSE:AIR Insider Trading Volume April 9th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Air New Zealand

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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$3.0m worth of Air New Zealand stock, about 0.3% of the company. We prefer to see high levels of insider ownership.

So What Do The Air New Zealand Insider Transactions Indicate?

An insider sold Air New Zealand shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we'd only buy after very careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 3 warning signs for Air New Zealand and we suggest you have a look.

But note: Air New Zealand 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.