Yahoo Finance Vintage Wine Estates' US$3.7m Market Cap Fall Books Insider Losses
Insiders who acquired US$409.1k worth of Vintage Wine Estates, Inc.'s (NASDAQ:VWE) stock at an average price of US$0.81 in the past 12 months may be dismayed by the recent 20% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$122.3k, which is not what they expected.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Vintage Wine Estates
The Last 12 Months Of Insider Transactions At Vintage Wine Estates
In the last twelve months, the biggest single purchase by an insider was when Co-Founder & Executive Chairman Patrick Roney bought US$117k worth of shares at a price of US$1.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.24). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Vintage Wine Estates insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$0.81. These transactions suggest that insiders have considered the current price attractive. 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!
Vintage Wine Estates 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 Vintage Wine Estates Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 22% of Vintage Wine Estates shares, worth about US$3.6m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Vintage Wine Estates Insider Transactions Indicate?
The fact that there have been no Vintage Wine Estates insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Vintage Wine Estates and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vintage Wine Estates. For instance, we've identified 5 warning signs for Vintage Wine Estates (2 can't be ignored) you should be aware of.
But note: Vintage Wine Estates may not be the best stock to buy. So take a peek at this free list 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
