Non Executive Independent Director Deborah Page Just Bought 15% More Shares In Service Stream Limited (ASX:SSM)

Whilst it may not be a huge deal, we thought it was good to see that the Service Stream Limited (ASX:SSM) Non Executive Independent Director, Deborah Page, recently bought AU$82k worth of stock, for AU$1.24 per share. That purchase might not be huge but it did increase their holding by 15%.

See our latest analysis for Service Stream

Service Stream Insider Transactions Over The Last Year

In fact, the recent purchase by Deborah Page was the biggest purchase of Service Stream shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$1.14 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Service Stream insiders bought shares during the last year, they didn't sell. They paid about AU$1.48 on average. This is nice to see since it implies that insiders might see value around current prices. 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!

Service Stream is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Service Stream Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Service Stream insiders own about AU$65m worth of shares. That equates to 14% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Service Stream Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Service Stream shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Service Stream and understanding these should be part of your investment process.

But note: Service Stream 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.

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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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