The Independent Non-Executive Chairman of Adacel Technologies Limited (ASX:ADA), Michael McConnell, Just Bought 51% More Shares

Investors who take an interest in Adacel Technologies Limited (ASX:ADA) should definitely note that the Independent Non-Executive Chairman, Michael McConnell, recently paid AU$0.57 per share to buy AU$181k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 51%.

See our latest analysis for Adacel Technologies

Adacel Technologies Insider Transactions Over The Last Year

In fact, the recent purchase by Michael McConnell was the biggest purchase of Adacel Technologies 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 above the current price of AU$0.51. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Michael McConnell was the only individual insider to buy shares in the last twelve months.

Michael McConnell purchased 662.16k shares over the year. The average price per share was AU$0.49. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Adacel Technologies 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.

Does Adacel Technologies Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of Adacel Technologies shares, worth about AU$5.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Adacel Technologies Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Adacel Technologies stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Adacel Technologies has 4 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

Of course Adacel Technologies 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.

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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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