Insider Buys Additional AU$250k In Tasmea Stock

Potential Tasmea Limited (ASX:TEA) shareholders may wish to note that the MD & Executive Director, Stephen Young, recently bought AU$250k worth of stock, paying AU$2.84 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

See our latest analysis for Tasmea

Tasmea Insider Transactions Over The Last Year

Notably, that recent purchase by MD & Executive Director Stephen Young was not the only time they bought Tasmea shares this year. They previously made an even bigger purchase of AU$286k worth of shares at a price of AU$1.62 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$2.85. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Stephen Young purchased 310.60k shares over the year. The average price per share was AU$1.96. 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!

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 Of Tasmea

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tasmea insiders own 64% of the company, currently worth about AU$420m 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 Tasmea Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Tasmea. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Tasmea has 2 warning signs we think 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 of direct interests only, but not derivative transactions or indirect interests.

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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.