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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 SKY Network Television Limited (NZSE:SKT), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for SKY Network Television
SKY Network Television Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Philip Bowman bought NZ$537k worth of shares at a price of NZ$2.70 per share. That implies that an insider found the current price of NZ$2.70 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for SKY Network Television share holders is that insiders were buying at near the current price.
In the last twelve months SKY Network Television insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insiders At SKY Network Television Have Bought Stock Recently
It's good to see that SKY Network Television insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought NZ$150k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own NZ$3.3m worth of SKY Network Television stock, about 0.9% of the company. We consider this fairly low insider ownership.
So What Do The SKY Network Television Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that SKY Network Television insiders are expecting a bright 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. Be aware that SKY Network Television is showing 2 warning signs in our investment analysis, and 1 of those is concerning...