Yahoo Finance Good Drinks Australia Co-Founder Acquires 7.0% More Stock
Whilst it may not be a huge deal, we thought it was good to see that the Good Drinks Australia Limited (ASX:GDA) Co-Founder, John Hoedemaker, recently bought AU$106k worth of stock, for AU$0.25 per share. Although the purchase is not a big one, increasing their shareholding by only 7.0%, it can be interpreted as a good sign.
View our latest analysis for Good Drinks Australia
The Last 12 Months Of Insider Transactions At Good Drinks Australia
In fact, the recent purchase by John Hoedemaker was the biggest purchase of Good Drinks Australia shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.26. 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.
While Good Drinks Australia insiders bought shares during the last year, they didn't sell. 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!
Good Drinks Australia is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Good Drinks Australia Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Good Drinks Australia insiders own 22% of the company, worth about AU$7.6m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Good Drinks Australia Tell Us?
The recent insider purchases are heartening. 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. Insiders likely see value in Good Drinks Australia shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Good Drinks Australia (including 1 which is a bit concerning).
But note: Good Drinks Australia may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
