Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of New Zealand Rural Land Company Limited (NZSE:NZL), that sends out a positive message to the company's shareholders.
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.
View our latest analysis for New Zealand Rural Land
The Last 12 Months Of Insider Transactions At New Zealand Rural Land
In the last twelve months, the biggest single purchase by an insider was when Director & Management Company Representative Christopher Swasbrook bought NZ$154k worth of shares at a price of NZ$1.05 per share. That implies that an insider found the current price of NZ$1.08 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the New Zealand Rural Land insiders decided to buy shares at close to current prices.
In the last twelve months New Zealand Rural Land insiders were buying shares, but not selling. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of New Zealand Rural Land
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. It appears that New Zealand Rural Land insiders own 16% of the company, worth about NZ$20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About New Zealand Rural Land Insiders?
It doesn't really mean much that no insider has traded New Zealand Rural Land shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think New Zealand Rural Land insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing New Zealand Rural Land. When we did our research, we found 8 warning signs for New Zealand Rural Land (2 don't sit too well with us!) that we believe deserve your full attention.
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, 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.
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