Insider Buying: Tasmea MD & Executive Director Bought AU$1m Of Shares

Tasmea Limited (ASX:TEA) shareholders (or potential shareholders) will be happy to see that the MD & Executive Director, Stephen Young, recently bought a whopping AU$1m worth of stock, at a price of AU$4.50. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.2%.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Tasmea Insider Transactions Over The Last Year

In fact, the recent purchase by Stephen Young was the biggest purchase of Tasmea shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$4.69. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Stephen Young was the only individual insider to buy shares in the last twelve months.

Stephen Young bought 325.40k shares over the last 12 months at an average price of AU$3.97. 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!

See our latest analysis for Tasmea

Tasmea is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Tasmea Boast High 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. It's great to see that Tasmea insiders own 45% of the company, worth about AU$539m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Tasmea Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Tasmea insiders are well aligned, and quite possibly think the share price is too low. Nice! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Tasmea has 2 warning signs we think you should be aware of.

But note: Tasmea 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 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.