The CEO & Executive Director of Plenti Group Limited (ASX:PLT), Daniel Foggo, Just Bought 8.5% More Shares

Investors who take an interest in Plenti Group Limited (ASX:PLT) should definitely note that the CEO & Executive Director, Daniel Foggo, recently paid AU$1.11 per share to buy AU$186k worth of the stock. Although the purchase only increased their holding by 8.5%, it is still a solid purchase in our view.

View our latest analysis for Plenti Group

The Last 12 Months Of Insider Transactions At Plenti Group

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Susan Forrester bought AU$205k worth of shares at a price of AU$1.03 per share. That means that an insider was happy to buy shares at around the current price of AU$1.06. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Plenti Group insiders decided to buy shares at close to current prices.

While Plenti Group insiders bought shares during the last year, they didn't sell. 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!

Plenti Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Plenti Group

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 16% of Plenti Group shares, worth about AU$29m. 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 Plenti Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Plenti Group insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Plenti Group that deserve your attention before buying any shares.

Of course Plenti Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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This article by Simply Wall St is general in nature. 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.
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