Stock Analysis

Peter Hodge Is The MD, CEO & Executive Director of InvestSMART Group Limited (ASX:INV) And They Just Picked Up 35% More Shares

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Potential InvestSMART Group Limited (ASX:INV) shareholders may wish to note that the MD, CEO & Executive Director, Peter Hodge, recently bought AU$272k worth of stock, paying AU$0.085 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 35%.

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The Last 12 Months Of Insider Transactions At InvestSMART Group

In fact, the recent purchase by Peter Hodge was the biggest purchase of InvestSMART Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.092. 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. Peter Hodge was the only individual insider to buy during the last year.

Peter Hodge bought a total of 4.96m shares over the year at an average price of AU$0.083. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

ASX:INV Insider Trading Volume December 20th 2020

InvestSMART Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of InvestSMART Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that InvestSMART Group insiders own 35% of the company, worth about AU$4.5m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The InvestSMART Group Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of InvestSMART Group we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing InvestSMART Group. Case in point: We've spotted 1 warning sign for InvestSMART Group 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, but not derivative transactions.

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