Quite a few insiders invested in Manawa Energy Limited (NZSE:MNW) last year which is positive news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Manawa Energy Limited's (NZSE:MNW) case, it's fantastic news for shareholders.
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.
Check out our latest analysis for Manawa Energy
The Last 12 Months Of Insider Transactions At Manawa Energy
In the last twelve months, the biggest single sale by an insider was when the insider, Stephen Fraser, sold NZ$110k worth of shares at a price of NZ$5.57 per share. That means that an insider was selling shares at around the current price of NZ$5.17. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). The only individual insider seller over the last year was Stephen Fraser.
In the last twelve months insiders purchased 41.27k shares for NZ$244k. On the other hand they divested 35.40k shares, for NZ$190k. In the last twelve months there was more buying than selling by Manawa Energy insiders. 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).
Insiders At Manawa Energy Have Sold Stock Recently
There was substantially more insider selling, than buying, of Manawa Energy shares over the last three months. In that time, insider Stephen Fraser dumped NZ$190k worth of shares. On the flip side, insider David Edward Gibson spent NZ$52k on purchasing shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership Of Manawa Energy
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Manawa Energy insiders have about 0.5% of the stock, worth approximately NZ$7.3m. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.
So What Do The Manawa Energy Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at Manawa Energy, in the last three months. But we take heart from prior transactions. But insiders own relatively little of the company, from what we can see. So the company doesn't look great on this analysis. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for Manawa Energy (1 makes us a bit uncomfortable!) 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.
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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.
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