Tamawood Limited (ASX:TWD) insider upped their holding by 22% earlier this year
From what we can see, insiders were net buyers in Tamawood Limited's (ASX:TWD ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Tamawood
The Last 12 Months Of Insider Transactions At Tamawood
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Lev Mizikovsky bought AU$10m worth of shares at a price of AU$2.89 per share. That means that an insider was happy to buy shares at above the current price of AU$2.36. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Lev Mizikovsky was the only individual insider to buy shares in the last twelve months. We note that Lev Mizikovsky was both the biggest buyer and the biggest seller.
Lev Mizikovsky bought a total of 3.82m shares over the year at an average price of AU$2.88. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Tamawood Boast High 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. Tamawood insiders own about AU$53m worth of shares (which is 64% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Tamawood Tell Us?
It doesn't really mean much that no insider has traded Tamawood 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 Tamawood insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 5 warning signs for Tamawood (2 are concerning!) and we strongly recommend you look at them before investing.
Of course Tamawood 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, 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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