Whilst it may not be a huge deal, we thought it was good to see that the InvestSMART Group Limited (ASX:INV) MD, CEO & Executive Director, Peter Hodge, recently bought AU$69k worth of stock, for AU$0.075 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 16.6%.
The Last 12 Months Of Insider Transactions At InvestSMART Group
In fact, the recent purchase by MD, CEO & Executive Director Peter Hodge was not their only acquisition of InvestSMART Group shares this year. Earlier in the year, they paid AU$0.07 per share in a AU$69k purchase. That implies that an insider found the current price of AU$0.09 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. The good news for InvestSMART Group share holders is that insiders were buying at near the current price.
In the last twelve months InvestSMART Group insiders were buying shares, but not selling. Their average price was about AU$0.083. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of AU$0.09. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
InvestSMART Group 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.
Insider Ownership of InvestSMART Group
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. It appears that InvestSMART Group insiders own 30% of the company, worth about AU$3.6m. 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 InvestSMART Group Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest InvestSMART Group insiders are well aligned, and that they may think the share price is too low. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
But note: InvestSMART Group 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.