Trade Alert: The Independent Non-Executive Director Of Seven Group Holdings Limited (ASX:SVW), Katherine Farrar, Has Just Spent AU$99k Buying 63% More Shares

By
Simply Wall St
Published
December 22, 2021
ASX:SVW
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Seven Group Holdings Limited (ASX:SVW) Independent Non-Executive Director, Katherine Farrar, recently bought AU$99k worth of stock, for AU$21.96 per share. Even though that isn't a massive buy, it did increase their holding by 63%, which is arguably a good sign.

See our latest analysis for Seven Group Holdings

The Last 12 Months Of Insider Transactions At Seven Group Holdings

The Independent Chairman of the Board & Lead Independent Director Terry Davis made the biggest insider purchase in the last 12 months. That single transaction was for AU$174k worth of shares at a price of AU$21.91 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$21.62). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Seven Group Holdings insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and 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!

insider-trading-volume
ASX:SVW Insider Trading Volume December 22nd 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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 0.4% of Seven Group Holdings shares, worth about AU$30m. 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 Seven Group Holdings Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Seven Group Holdings insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Seven Group Holdings. For example - Seven Group Holdings has 2 warning signs we think you should be aware of.

Of course Seven Group Holdings 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.