When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Peet Limited’s (ASX:PPC) instance, it’s good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Peet
Over the last year, we can see that the biggest insider purchase was by Non-Executive Chairman Anthony Lennon for AU$421k worth of shares, at about AU$1.05 per share. That means that an insider was happy to buy shares at around the current price of AU$1.13. 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. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. In this case we’re pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Peet insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Over the last quarter, Peet insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$517k for shares in the company — and none sold. This makes one think the business has some good points.
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. Peet insiders own 29% of the company, currently worth about AU$158m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Peet insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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 help with this, we’ve discovered 3 warning signs (2 don’t sit too well with us!) that you ought to be aware of before buying any shares in Peet.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
On Wednesday, the Fed bumped up interest rates again, its third 75-basis point hike since June, and signaled that there could be two more such hikes by the end of this year. The conventional wisdom has the Fed acting properly, and aggressively, in an attempt to counter inflation raging at 40-year high levels. But conventional wisdom isn’t always right – and we can learn a lot by consulting the contrarians. Few top investors are more contrarian than Cathie Wood. The founder and manager of ARK Inv
KEY WORDS “I think we’re giving Powell too much praise. … The last two years are one of the biggest policy mistakes in the 110-year history of the Fed by staying so easy when everything was booming.
Homeowners beware. But don't panic, either.
You have just a few weeks to pounce on Treasury I bonds' sky-high interest rate. Also called Series I savings bonds, their interest rate is 9.62%.
And what it means for your wealth-building options.
The shipping company has developed a reputation as one of the best dividend stocks around
Boeing (NYSE: BA) made a big move to put part of its troubled past behind it, but the aerospace manufacturer also apparently has fallen out of favor with what had been a key customer in China. Boeing has taken its investors on a turbulent ride over the past few years. The company's 737 MAX, which was once billed as having the potential to be the top-selling aircraft of all time, was involved in fatal crashes in 2018 and 2019 that led to the plane being grounded for 18 months and prompted a comprehensive review of Boeing's engineering and safety practices.
In a year when all three of the major stock indexes in the United States have declined by 15% or more, there are plenty of dividend stocks out there with high dividend yields. What if I told you that there is a Dow Jones Industrial Average stock with a yield north of 6%? Dow Inc. (NYSE: DOW), a maker of various chemical products and one of the Dow Jones Industrial Average's 30 components, fits this description.
Yahoo Finance Live anchor Seana Smith highlights stocks moving in after-hours trading, including Ford, FedEx, and Moderna.
It's Friday morning — two days after the Federal Reserve raised interest rates 0.75%, and one day after seemingly every other central bank in the world followed suit, according to The Wall Street Journal — and oil stocks are tanking. As of 9:50 a.m. ET, shares of oil company Occidental Petroleum (NYSE: OXY) are down 5.6%, while industry bellwether ExxonMobil (NYSE: XOM) is down a solid 6%, and refiner Phillips 66 (NYSE: PSX) is leading the pack lower with a 6.7% loss.
Forget everything you think you know about the relationship between interest rates and the stock market.
Yahoo Finance's Jared Blikre joins the Live show to check out market and sector losses amid today's sell-off, while also looking at meme stocks and the travel industrial.
In this article, we discuss 10 best stocks to buy before recession begins. If you want to see more stocks in this selection, click 5 Best Stocks to Buy Before Recession Begins. Between 1929 and 1939, the period famously dubbed the Great Depression, global economies suffered from stock market crashes, sharp declines in output, high […]
In this article, we discuss the 11 best commodity stocks to invest in. If you want to read about some more commodity stocks, go directly to 5 Best Commodity Stocks To Invest In. Macroeconomic concerns have been clouding the commodities market in the past few days after the Federal Reserve in the United States hiked […]
In this article, we discuss the 15 stocks Australian billionaire Kerr Neilson is selling. If you want to skip our analysis of Neilson’s history and investment philosophy, go directly to Australian Billionaire Kerr Neilson is Selling These 15 Stocks. Kerr Neilson is a billionaire investor who co-founded Platinum Asset Management with Andrew Clifford nearly 28 […]
Shares of virtually all oil and gas stocks crashed today, with even those regarded as among the "safest" oil and gas stocks plunging in value. Diversified integrated major and Warren Buffett favorite Chevron (NYSE: CVX) fell 5%, pipeline company Enterprise Products Partners (NYSE: EPD) fell 5.3%, and shale explorer and producer Diamondback Energy (NASDAQ: FANG) fell a whopping 9.5% as of 1:15 p.m. ET. All of these oil and gas-related stocks seem to be following the plunge in oil prices, as November oil futures fell 5.5% at that time to $78.90 as of this writing, similar to the first two stocks.
The market has soured on these stocks, but insiders are buying. Is it time to load up on these companies?
Shares of recreational vehicle (RV) company Camping World Holdings (NYSE: CWH) crashed on Friday, after an analyst lowered their price target in a research note. As of 1:10 p.m. ET, Camping World stock was down 10%. Truist analyst Michael Swartz has been busily researching the state of the RV market, which led him to lower his target price for Camping World stock.
Boise, Idaho; Philadelphia; Pensacola, Fla.; Austin; and Reno, Nev.; Minnesota; and Utah are the housing markets with the most buyer pullback, says one home builder.
Goldman finally decided to stop fighting the Fed and no longer sees the index finishing the year at 4300.