Insider Buys Additional ₪1.2b In G. Willi-Food International Stock

Those following along with G. Willi-Food International Ltd. (NASDAQ:WILC) will no doubt be intrigued by the recent purchase of shares by Zwi Williger, Chairman of the Board of the company, who spent a stonking US$1.2b on stock at an average price of US$661. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by -252%.

View our latest analysis for G. Willi-Food International

G. Willi-Food International Insider Transactions Over The Last Year

In fact, the recent purchase by Zwi Williger was the biggest purchase of G. Willi-Food International shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$10.74. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Zwi Williger was the only individual insider to buy shares in the last twelve months.

Zwi Williger bought a total of 1.90m shares over the year at an average price of US$652. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

G. Willi-Food International is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does G. Willi-Food International Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. G. Willi-Food International insiders own about US$12m worth of shares. That equates to 8.1% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The G. Willi-Food International Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of G. Willi-Food International we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 2 warning signs for G. Willi-Food International (1 is a bit concerning!) that we believe deserve your full attention.

But note: G. Willi-Food International 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 of direct interests only, but not derivative transactions or indirect interests.

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