Director Dealing: Two Insiders at Games Workshop Group Just Bought Stock

Corporate insiders know more about their businesses than anyone else. If these individuals are buying company stock, it’s often worth taking a closer look.

In this report, we are going to highlight some interesting insider buying at Games Workshop Group PLC (GAW:LN). Games Workshop is a British manufacturer of miniature wargames. Its best-known products are Warhammer Age of Sigmar and Warhammer 40,000. The company is listed on the London Stock Exchange and currently has a market capitalization of £3.7 billion.

Multiple Insider Purchases

Our data shows that on August 2, two Games Workshop insiders purchased stock. Board member Randal Casson purchased 500 shares at a price of £115.70 per share. Meanwhile, board member Mark Lam snapped up 200 shares at a price of £115.26 per share.

Buying at High Levels

What stands out here is the fact that these insiders have purchased the stock after a very strong run (+50% over the last year). At present, it’s close to its all-time highs. This suggests that they expect business performance – which has been good recently – to remain strong.

Solid Growth

Games Workshop’s recent full-year results for the year ended May 28 showed that the company continues to generate solid growth.

For the period, total revenue amounted to £470.8 million, up 14% year on year. Earnings per share came in at 409.7p versus 391.3p a year earlier.

"We finished the year having delivered eight consecutive years of group sales and profit growth - in the period we reported the highest level of sales and the most profit we have generated since flotation 29 years ago,” commented CEO Kevin Rountree.

On the back of this performance, the company declared total dividends of 415p per share. This represented an increase of 77% on the prior-year payout.

In light of the growth here, and the large increase in the dividend, we see the insider buying as a bullish development.