Multiple insiders secured a larger position in Treasury Wine Estates Limited( ASX:TWE ) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Treasury Wine Estates
Over the last year, we can see that the biggest insider purchase was by insider Olivier C. Goudet for AU$244m worth of shares, at about AU$6.95 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$5.16). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Treasury Wine Estates insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$5.83. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Treasury Wine Estates
There are plenty of other companies that have insiders buying up shares. You probably do notwant to miss this free list of undervalued small cap companies that insiders are buying.
Treasury Wine Estates Insiders Bought Stock Recently
Over the last quarter, Treasury Wine Estates insiders have spent a meaningful amount on shares. Specifically, insider Olivier C. Goudet bought AU$288m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership Of Treasury Wine Estates
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. Treasury Wine Estates insiders own about AU$262m worth of shares (which is 6.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Treasury Wine Estates Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Treasury Wine Estates. One for the watchlist, at least! 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 Treasury Wine Estates you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
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