Insiders who bought this year lost NZ$38k as Port of Tauranga Limited (NZSE:POT) sheds NZ$197m in value

Simply Wall St
January 24, 2022
Source: Shutterstock

Insiders who acquired NZ$259k worth of Port of Tauranga Limited's (NZSE:POT) stock at an average price of NZ$7.39 in the past 12 months may be dismayed by the recent 4.4% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth NZ$220k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Port of Tauranga

Port of Tauranga Insider Transactions Over The Last Year

The insider Mark Cairns made the biggest insider purchase in the last 12 months. That single transaction was for NZ$167k worth of shares at a price of NZ$7.39 each. That means that an insider was happy to buy shares at above the current price of NZ$6.30. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Port of Tauranga insiders may have bought shares in the last year, but they didn't sell any. 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!

NZSE:POT Insider Trading Volume January 24th 2022

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

Does Port of Tauranga Boast High 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. Port of Tauranga insiders own about NZ$39m worth of shares. That equates to 0.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Port of Tauranga Insiders?

It doesn't really mean much that no insider has traded Port of Tauranga shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Port of Tauranga insiders are doubting the company, and they do own shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Port of Tauranga.

Of course Port of Tauranga 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.

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.