Spark New Zealand Insiders Placed Bullish Bets Worth NZ$1.01m

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Spark New Zealand Limited's (NZSE:SPK) instance, it's good news for shareholders.

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.

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Spark New Zealand Insider Transactions Over The Last Year

The Independent Chairman of the Board Justine Gay Smyth made the biggest insider purchase in the last 12 months. That single transaction was for NZ$410k worth of shares at a price of NZ$2.05 each. So it's clear an insider wanted to buy, at around the current price, which is NZ$2.27. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 431.52k shares worth NZ$1.0m. But they sold 10.00k shares for NZ$23k. In total, Spark New Zealand insiders bought more than they sold over the last year. They paid about NZ$2.33 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Spark New Zealand

Spark New Zealand is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Spark New Zealand Have Sold Stock Recently

The last three months saw some Spark New Zealand insider selling. Network & Operations Director Renee Mateparae divested only NZ$23k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

Does Spark New Zealand Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Spark New Zealand insiders have about 0.1% of the stock, worth approximately NZ$4.4m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Spark New Zealand Tell Us?

While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Spark New Zealand stock. 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. Be aware that Spark New Zealand is showing 2 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

Of course Spark New Zealand may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.