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New Zealand King Salmon Investments Limited (NZSE:NZK) Insiders Increased Their Holdings

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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in New Zealand King Salmon Investments Limited (NZSE:NZK).

What Is Insider Buying?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

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We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.

View our latest analysis for New Zealand King Salmon Investments

New Zealand King Salmon Investments Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non- Executive Chairman John William Ryder for NZ$310k worth of shares, at about NZ$2.07 per share. That implies that an insider found the current (approximate) price enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. Nonetheless, we consider it positive if insiders want to buy at around the current share price.

Over the last year, we can see that insiders have bought 210.21k shares worth NZ$435k. In total, New Zealand King Salmon Investments insiders bought more than they sold over the last year. They paid about NZ$2.07 on average. It’s great to see insiders putting their own cash into the company’s stock, albeit at below the recent share price (NZ$2.19). The chart below shows insider transactions (by 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!

NZSE:NZK Insider Trading February 20th 19
NZSE:NZK Insider Trading February 20th 19

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does New Zealand King Salmon Investments 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that New Zealand King Salmon Investments insiders own 7.8% of the company, worth about NZ$24m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Do The New Zealand King Salmon Investments Insider Transactions Indicate?

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 New Zealand King Salmon Investments and their transactions don’t cause us concern. Of course, the future is what matters most. So if you are interested in New Zealand King Salmon Investments, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.