Stock Analysis

The Independent Director of SRG Global Limited (ASX:SRG), Peter Brecht, Just Bought 13% More Shares

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ASX:SRG
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Whilst it may not be a huge deal, we thought it was good to see that the SRG Global Limited (ASX:SRG) Independent Director, Peter Brecht, recently bought AU$100k worth of stock, for AU$0.40 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 13%.

Check out our latest analysis for SRG Global

SRG Global Insider Transactions Over The Last Year

The MD & Director David Macgeorge made the biggest insider purchase in the last 12 months. That single transaction was for AU$159k worth of shares at a price of AU$0.32 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.43. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

SRG Global insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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ASX:SRG Insider Trading Volume December 8th 2020

SRG Global 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 8.6% of SRG Global shares, worth about AU$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About SRG Global Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest SRG Global insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for SRG Global you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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