Gullewa Reaches AU$18m Market Cap Benefiting Insider Stock Buying
Gullewa Limited (ASX:GUL) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 22%, resulting in a AU$3.3m rise in the company's market capitalisation, translating to a gain of 19% on their initial investment. As a result, their original purchase of AU$69.9k worth of stock is now worth AU$83.0k.
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.
Gullewa Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO, Company Secretary & Executive Director David Deitz bought AU$70k worth of shares at a price of AU$0.07 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.083. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Gullewa
Gullewa is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Gullewa insiders own about AU$6.5m worth of shares. That equates to 36% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Gullewa Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Gullewa insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gullewa. At Simply Wall St, we found 3 warning signs for Gullewa that deserve your attention before buying any shares.
But note: Gullewa may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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. 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.