Insiders Sold WasteCo Group Prematurely At NZ$0.011 With Stock Trading Higher
Even though WasteCo Group Limited (NZSE:WCO) has fallen by 14% over the past week , insiders who sold NZ$851k worth of stock over the past year have had less luck. The average selling price of NZ$0.011 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
WasteCo Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Rowena Baan-Mathias, sold NZ$549k worth of shares at a price of NZ$0.012 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is NZ$0.006. So it is hard to draw any strong conclusion from it.
In the last year WasteCo Group insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for WasteCo Group
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
WasteCo Group Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at WasteCo Group. In total, insiders sold NZ$114k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of WasteCo Group
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. WasteCo Group insiders own about NZ$2.9m worth of shares (which is 44% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The WasteCo Group Insider Transactions Indicate?
Insiders haven't bought WasteCo Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing WasteCo Group. For instance, we've identified 4 warning signs for WasteCo Group (3 are a bit concerning) you should be aware of.
Of course WasteCo 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 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. 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.