Insider Spends US$225k Buying More Shares In Gannett

Investors who take an interest in Gannett Co., Inc. (NYSE:GCI) should definitely note that the Independent Director, Laurence Tarica, recently paid US$4.50 per share to buy US$225k worth of the stock. Although the purchase only increased their holding by 4.8%, it is still a solid purchase in our view.

Check out our latest analysis for Gannett

The Last 12 Months Of Insider Transactions At Gannett

Notably, that recent purchase by Independent Director Laurence Tarica was not the only time they bought Gannett shares this year. Earlier in the year, they paid US$1.85 per share in a US$370k purchase. Even though the purchase was made at a significantly lower price than the recent price (US$5.47), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Gannett insiders may have bought shares in the last year, but they didn't sell any. They paid about US$2.31 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Gannett is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Gannett insiders own about US$34m worth of shares. That equates to 5.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Gannett Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Gannett insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Gannett has 1 warning sign we think you should be aware of.

But note: Gannett 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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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.