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 Wagners Holding Company Limited (ASX:WGN), 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.

See our latest analysis for Wagners Holding

The Last 12 Months Of Insider Transactions At Wagners Holding

The Non-Executive Chairman Denis Wagner made the biggest insider purchase in the last 12 months. That single transaction was for AU$264k worth of shares at a price of AU$0.66 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.79. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Wagners Holding insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction! insider-trading-volume

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 freelist of companies. (Hint: insiders have been buying them).

Does Wagners Holding Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Wagners Holding insiders own 48% of the company, worth about AU$72m. 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 Wagners Holding Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Wagners Holding shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Wagners Holding insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wagners Holding. For example, Wagners Holding has 3 warning signs (and 1 which can't be ignored) we think you should know about.

But note: Wagners Holding may not be the best stock to buy. So take a peek at this freelist 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, 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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