Excelsior Capital Insider Confidence Rewarded, Stock Hits AU$124m Market Cap

Excelsior Capital Limited (ASX:ECL) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 29%, resulting in a AU$28m rise in the company's market capitalisation, translating to a gain of 37% on their initial investment. In other words, the original AU$171.9k purchase is now worth AU$235.4k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

The Last 12 Months Of Insider Transactions At Excelsior Capital

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Leanne Catelan for AU$172k worth of shares, at about AU$3.13 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$4.28), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Excelsior Capital

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Excelsior Capital insiders own 63% of the company, currently worth about AU$78m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Excelsior Capital Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Excelsior Capital shares in the last quarter. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Excelsior Capital insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Excelsior Capital. For example - Excelsior Capital has 4 warning signs we think you should be aware of.

Of course Excelsior Capital 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.