In general, when one insider buys stock, it’s usually not a big deal. However, if multiple insiders are purchasing, Turners Automotive Group Limited (NZSE:TRA), which sends a positive message to the company’s shareholders.
While I would never suggest that investors should base their decisions solely on the actions of corporate directors, we believe it is perfectly logical to monitor insider actions.
See the latest analysis from Turners Automotive Group
Turners Automotive Group’s insider trading over the past year
We can see that last year’s largest insider acquisition was NZ$100,000 worth of shares by independent non-executive director John Roberts, at around NZ$3.58 per share. That means the insider wanted to buy the stock even if the stock was higher than he NZ$3.33 (recent price). Their views may have changed since then, but at least it shows they were optimistic at the time. In our view, the price an insider pays for a stock is very important. As a general rule, if an insider buys a stock at a price higher than the current price, we feel more positive about the stock.
Over the past 12 months, Turners Automotive Group insiders have been buying, but not selling, shares. Below is a visual depiction of insider trading (by companies and individuals) over the last 12 months. Clicking on the chart will show you all individual deals, such as stock, individual, and date.
Turners Automotive Group isn’t the only insider buying shares.Let’s take a look at this freedom List of companies growing with insider buying.
Turners Automotive Group insider recently bought stock
We are pleased that Turners Automotive Group insiders are making a notable investment in the company’s stock. Independent Non-Executive Director John Roberts said he spent NZ$100,000 on the stake, but there was no sale. This is a positive in our book because it implies a certain amount of confidence.
Does Turners Automotive Group boast high insider ownership?
For public shareholders, it is worth checking the number of shares held by internal parties. We usually want to see a pretty high level of insider ownership. Turners Automotive Group insiders own shares worth approximately NZ$50 million. This equates to his 17% in the company. Certainly we’ve seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest coordination between insiders and other shareholders.
So what does Turners Automotive Group’s insider trading tell us?
It’s good to see recent insider purchases. Long-term insider trading also gives us confidence.Given that insiders own a sizeable portion of Turners Automotive Group, I think they’re probably pretty confident in a bright future. But it’s also worth knowing the risks facing this company. Our analysis shows Two Warning Signs from Turners Automotive Group (1 could be serious!) We highly recommend reviewing these before investing.
However, please note the following: Turners Automotive Group may not be the best stock to buy. Now take a look at this freedom A list of interesting companies with high ROE and low debt.
For the purposes of this article, an insider is an individual who reports a transaction to the relevant regulatory body. Currently, we consider open market transactions and private disposals, but not derivative transactions.
Do you have feedback on this article? What interests you? contact directly with us. Or send an email to our editorial team (at) Simplywallst.com.
This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
Participate in Paid User Research Sessions
you $30 USD Amazon Gift Card An hour of your time while helping build better investment tools for individual investors like you.SIGN UP HERE