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The recent price decline of 12% in wrkr Ltd's (ASX:WRK) stock may have disappointed insiders who bought AU$1.2m worth of shares at an average price of AU$0.031 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$833k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for wrkr
The Last 12 Months Of Insider Transactions At wrkr
In the last twelve months, the biggest single purchase by an insider was when insider Donald Sharp bought AU$1.1m worth of shares at a price of AU$0.031 per share. That means that even when the share price was higher than AU$0.022 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While wrkr insiders bought shares during the last year, they didn't sell. 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!
wrkr is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of wrkr
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that wrkr insiders own 9.3% of the company, worth about AU$2.5m. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At wrkr Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if wrkr insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing wrkr. When we did our research, we found 5 warning signs for wrkr (3 are a bit unpleasant!) that we believe deserve your full attention.