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Investors who take an interest in Spark New Zealand Limited (NZSE:SPK) should definitely note that the Independent Chairman of the Board, Justine Gay Smyth, recently paid NZ$2.05 per share to buy NZ$410k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At Spark New Zealand
In fact, the recent purchase by Justine Gay Smyth was the biggest purchase of Spark New Zealand 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 NZ$2.04. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 447.74k shares for NZ$1.1m. But insiders sold 16.00k shares worth NZ$64k. In total, Spark New Zealand insiders bought more than they sold over the last year. The average buy price was around NZ$2.43. These transactions suggest that insiders have considered the current price attractive. 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!
Check out our latest analysis for Spark New Zealand
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.
Does Spark New Zealand 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Spark New Zealand insiders have about 0.09% of the stock, worth approximately NZ$3.4m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Spark New Zealand Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Spark New Zealand insiders are reasonably well aligned, and optimistic for the future. 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 instance, we've identified 4 warning signs for Spark New Zealand (1 is potentially serious) you should be aware of.