Insiders Give Up AU$71k As xReality Group Stock Drops To AU$0.027

The recent price decline of 13% in xReality Group Limited's (ASX:XRG) stock may have disappointed insiders who bought AU$254.6k worth of shares at an average price of AU$0.037 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$184.1k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At xReality Group

In the last twelve months, the biggest single sale by an insider was when the Executive Director, Kim Hopwood, sold AU$100k worth of shares at a price of AU$0.038 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.027. So it may not shed much light on insider confidence at current levels. Kim Hopwood was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 6.82m shares for AU$255k. But insiders sold 2.63m shares worth AU$100k. In the last twelve months there was more buying than selling by xReality Group insiders. 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!

Check out our latest analysis for xReality Group

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

Are xReality Group Insiders Buying Or Selling?

There was some insider buying at xReality Group over the last quarter. CEO & Executive Director Wayne Jones shelled out AU$8.7k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

Does xReality Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 19% of xReality Group shares, worth about AU$3.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The xReality Group Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders own shares in xReality Group and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for xReality Group (2 shouldn't be ignored!) that we believe deserve your full attention.

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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.