The insiders who bought for £90,000 in the UK Games Workshop Group PLC (LON:GAW) Over the past year, stocks have recouped some of their losses after the price gained 5.3% last week. The purchase, however, has proven to be a costly gamble, with losses currently totaling £4.6k.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we think it makes perfect sense to keep tabs on what insiders are doing.
Before examining these insider trades, please note that our analysis indicates that GAW is potentially overvalued!
Games Workshop Group Insider Transactions Over the Last Year
Independent non-executive board chair Elaine O’Donnell made the biggest insider buy in the past 12 months. This single transaction was for £55,000 of shares at a price of £77.31 each. This means that an insider was happy to buy shares above the current price of UK£75.00. Although their perspective has changed since the purchase, it at least suggests that they have confidence in the future of the company. We always take careful note of the price paid by insiders when buying stocks. Generally, we are more positive about a stock if insiders bought the stock above current prices, as this suggests they viewed the stock as good value, even at a higher price.
Over the past twelve months, Games Workshop Group insiders have been buying stocks, but not selling. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
Games Workshop Group isn’t the only insider stock to buy. So take a look at this free list of growing companies with insider buying.
Does the Games Workshop group boast of high insider ownership?
Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if insiders have a significant number of shares in the company. According to our data, insiders hold £1.8m of Games Workshop Group shares, or around 0.07% of the company. I generally like to see higher levels of ownership.
So what do the Games Workshop Group’s insider trading indicate?
It doesn’t mean much that no insider has traded shares of Games Workshop Group in the last quarter. But insiders have shown more appetite for the stock over the past year. The transactions are good but it would be more encouraging if Games Workshop Group insiders bought more shares in the company. In addition to knowing what insider trading is going on, it is beneficial to identify the risks that Games Workshop Group faces. Example: we have identified 2 warning signs for Games Workshop Group you should be aware of, and 1 of them is important.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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