Way 2 Vat Insider Buyers Net AU$80k Despite 13% Stock Decline

Insiders who purchased Way 2 Vat Ltd (ASX:W2V) shares in the past 12 months are unlikely to be deeply impacted by the stock's 13% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of AU$302.1k is now worth AU$381.9k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Way 2 Vat Insider Transactions Over The Last Year

The insider Richard Colebatch made the biggest insider purchase in the last 12 months. That single transaction was for AU$138k worth of shares at a price of AU$0.023 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.034. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Richard Colebatch bought a total of 11.23m shares over the year at an average price of AU$0.027. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Way 2 Vat

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Way 2 Vat insiders own 14% of the company, worth about AU$1.4m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Way 2 Vat Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Way 2 Vat 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. While conducting our analysis, we found that Way 2 Vat has 4 warning signs and it would be unwise to ignore them.

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 of direct interests only, but not derivative transactions or indirect interests.

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