One Wiseway Group Limited (ASX:WWG) insider upped their stake by 2.9% in the previous year

·3 min read

Looking at Wiseway Group Limited's (ASX:WWG ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Wiseway Group

The Last 12 Months Of Insider Transactions At Wiseway Group

The Co-founder Yanli Tong made the biggest insider purchase in the last 12 months. That single transaction was for AU$226k worth of shares at a price of AU$0.27 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.18). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Yanli Tong was the only individual insider to buy shares in the last twelve months. We note that Yanli Tong was both the biggest buyer and the biggest seller.

Yanli Tong bought 1.68m shares over the last 12 months at an average price of AU$0.27. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Wiseway Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders at Wiseway Group Have Bought Stock Recently

There has been significantly more insider buying, than selling, at Wiseway Group, over the last three months. We can see that Co-founder Yanli Tong paid AU$453k for shares in the company. But Co-founder Yanli Tong sold shares worth AU$36k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership of Wiseway Group

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Wiseway Group insiders own 48% of the company, currently worth about AU$13m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Wiseway Group Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Wiseway Group insiders are well aligned, and quite possibly think the share price is too low. Looks promising! 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 Wiseway Group has 3 warning signs and it would be unwise to ignore these.

Of course Wiseway Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting