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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Endeavour Group Limited (ASX:EDV), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Our free stock report includes 1 warning sign investors should be aware of before investing in Endeavour Group. Read for free now.
The Last 12 Months Of Insider Transactions At Endeavour Group
The Executive Chairman Ari Mervis made the biggest insider purchase in the last 12 months. That single transaction was for AU$641k worth of shares at a price of AU$4.27 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$4.03). 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. 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.
While Endeavour Group insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Endeavour Group
Endeavour Group 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.
Does Endeavour Group Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Endeavour Group insiders own 15% of the company, currently worth about AU$1.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Endeavour Group Insider Transactions Indicate?
The fact that there have been no Endeavour Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Endeavour Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. Every company has risks, and we've spotted 1 warning sign for Endeavour Group you should know about.