Trade Alert: The Independent Non-Executive Director Of Southern Cross Electrical Engineering Limited (ASX:SXE), Karl Paganin, Has Just Spent AU$84k Buying 16% More Shares

Even if it's not a huge purchase, we think it was good to see that Karl Paganin, the Independent Non-Executive Director of Southern Cross Electrical Engineering Limited (ASX:SXE) recently shelled out AU$84k to buy stock, at AU$0.42 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%.

View our latest analysis for Southern Cross Electrical Engineering

Southern Cross Electrical Engineering Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Director, David Hammond, for AU$1.1m worth of shares, at about AU$0.52 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.43. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was David Hammond.

Happily, we note that in the last year insiders paid AU$329k for 700.00k shares. But insiders sold 3240496 shares worth AU$1.7m. David Hammond ditched 3240496 shares over the year. The average price per share was AU$0.52. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Southern Cross Electrical Engineering 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 of Southern Cross Electrical Engineering

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 25% of Southern Cross Electrical Engineering shares, worth about AU$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Southern Cross Electrical Engineering Insiders?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Southern Cross Electrical Engineering insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. 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 found 3 warning signs for Southern Cross Electrical Engineering that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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