Shine Justice's Market Cap Up AU$13m Following Year Of Insider Stock Buying

Last week, Shine Justice Ltd (ASX:SHJ) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10% last week, resulting in a AU$13m increase in the company's market worth, implying a 13% gain on their initial purchase. As a result, their original purchase of AU$181.7k worth of stock is now worth AU$205.0k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Shine Justice

The Last 12 Months Of Insider Transactions At Shine Justice

The Co-Founder Simon Morrison made the biggest insider purchase in the last 12 months. That single transaction was for AU$94k worth of shares at a price of AU$0.72 each. That means that an insider was happy to buy shares at around the current price of AU$0.79. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Shine Justice share holders is that insiders were buying at near the current price.

Shine Justice insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Shine Justice

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. Shine Justice insiders own about AU$75m worth of shares (which is 55% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Shine Justice Insider Transactions Indicate?

The fact that there have been no Shine Justice insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Shine Justice insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shine Justice. Every company has risks, and we've spotted 2 warning signs for Shine Justice you should know about.

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.