Independent Director of Naked Wines Picks Up 14% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Naked Wines plc (LON:WINE) Independent Director, Jack Pailing, recently bought UK£59k worth of stock, for UK£0.59 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 14%.

See our latest analysis for Naked Wines

Naked Wines Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Director Jack Pailing was not their only acquisition of Naked Wines shares this year. They previously made an even bigger purchase of UK£62k worth of shares at a price of UK£0.43 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£0.57), we still think insider buying is a positive. 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.

In the last twelve months Naked Wines 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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, Naked Wines insiders have about 4.6% of the stock, worth approximately UK£2.0m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Naked Wines Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Naked Wines insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Naked Wines. You'd be interested to know, that we found 1 warning sign for Naked Wines and we suggest you have a look.

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 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.