Insider Buying: The Infomedia Ltd (ASX:IFM) Non-Executive Director Just Bought AU$85k Worth Of Shares

Even if it's not a huge purchase, we think it was good to see that Kim Elizabeth Anderson, the Non-Executive Director of Infomedia Ltd (ASX:IFM) recently shelled out AU$85k to buy stock, at AU$1.71 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Infomedia

Infomedia Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the MD, CEO & Executive Director, Jonathan Rubinsztein, sold AU$4.5m worth of shares at a price of AU$1.86 per share. That means that an insider was selling shares at around the current price of AU$1.65. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Jonathan Rubinsztein was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 100.00k shares for AU$187k. But insiders sold 2.43m shares worth AU$4.5m. 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!

I will like Infomedia better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.9% of Infomedia shares, worth about AU$12m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Infomedia Tell Us?

It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Infomedia insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Infomedia. Case in point: We've spotted 2 warning signs for Infomedia you should be aware of.

But note: Infomedia 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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