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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of WIA Gold Limited (ASX:WIA), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for WIA Gold
The Last 12 Months Of Insider Transactions At WIA Gold
Over the last year, we can see that the biggest insider purchase was by Executive Chairman Josef El-Raghy for AU$215k worth of shares, at about AU$0.039 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.095), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
WIA Gold 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that WIA Gold insiders own about AU$13m worth of shares (which is 15% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At WIA Gold Tell Us?
The fact that there have been no WIA Gold insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think WIA Gold insiders are doubting the company, and they do own shares. While we like knowing 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. Case in point: We've spotted 4 warning signs for WIA Gold you should be aware of, and 3 of them don't sit too well with us.