Gullewa Limited (ASX:GUL) insiders recover some losses but still AU$2.9k away from matching original investment

Insiders who bought AU$150k worth of Gullewa Limited (ASX:GUL) stock in the last year recovered part of their losses as the stock rose by 15% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$2.9k.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Gullewa

Gullewa Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, Company Secretary & Executive Director, David Deitz, sold AU$122k worth of shares at a price of AU$0.061 per share. So we know that an insider sold shares at around the present share price of AU$0.06. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). David Deitz was the only individual insider to sell over the last year. Notably David Deitz was also the biggest buyer, having purchased AU$150k worth of shares.

In the last twelve months insiders purchased 2.45m shares for AU$150k. But they sold 2.00m shares for AU$122k. Overall, Gullewa insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Gullewa is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Gullewa Have Bought Stock Recently

There was some insider buying at Gullewa over the last quarter. Insiders purchased AU$31k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Gullewa

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. We usually like to see fairly high levels of insider ownership. Gullewa insiders own about AU$6.4m worth of shares (which is 55% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Gullewa Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Gullewa insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gullewa. Our analysis shows 4 warning signs for Gullewa (2 shouldn't be ignored!) and we strongly recommend you look at them before investing.

Of course Gullewa 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, 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

COMMENTS