Yahoo Finance Bullish insiders bet NZ$3.7m on Air New Zealand Limited (NZSE:AIR)
Multiple insiders secured a larger position in Air New Zealand Limited (NZSE:AIR) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Air New Zealand
The Last 12 Months Of Insider Transactions At Air New Zealand
Over the last year, we can see that the biggest insider purchase was by Chief Executive Officer Gregory Foran for NZ$1.5m worth of shares, at about NZ$0.57 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of NZ$0.77. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid NZ$3.7m for 5.92m shares. On the other hand they divested 88.64k shares, for NZ$112k. In the last twelve months there was more buying than selling by Air New Zealand insiders. Their average price was about NZ$0.63. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Air New Zealand is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Air New Zealand Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Air New Zealand insiders own about NZ$16m worth of shares (which is 0.6% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Air New Zealand Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Air New Zealand and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Air New Zealand.
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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