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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Naked Wines plc's (LON:WINE) instance, it's good news for 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 Naked Wines
Naked Wines Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Jack Pailing for UK£62k worth of shares, at about UK£0.43 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£0.55. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Naked Wines 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Naked Wines is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Naked Wines Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Naked Wines. Independent Director Jack Pailing spent UK£59k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Naked Wines
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own UK£1.9m worth of Naked Wines stock, about 4.6% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Naked Wines Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Naked Wines 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. Every company has risks, and we've spotted 1 warning sign for Naked Wines you should know about.