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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 NWF Group plc (LON:NWF), 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 do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for NWF Group
NWF Group Insider Transactions Over The Last Year
The Managing Director of Feeds, Andrew Downie, made the biggest insider sale in the last 12 months. That single transaction was for UK£44k worth of shares at a price of UK£2.25 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (UK£1.68). So it is hard to draw any strong conclusion from it. Andrew Downie was the only individual insider to sell over the last year.
In the last twelve months insiders purchased 27.25k shares for UK£48k. But insiders sold 20.00k shares worth UK£44k. In total, NWF Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
NWF Group Insiders Bought Stock Recently
There was some insider buying at NWF Group over the last quarter. Independent Non-Executive Director Amanda Burton purchased UK£30k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
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 UK£1.1m worth of NWF Group stock, about 1.3% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.
So What Does This Data Suggest About NWF Group Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if NWF Group insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that NWF Group has 1 warning sign and it would be unwise to ignore this.