Insider Buying: Kenneth Gray Just Spent AU$1.4m On QuickFee Limited (ASX:QFE) Shares

By
Simply Wall St
Published
June 15, 2021
ASX:QFE
Source: Shutterstock

QuickFee Limited (ASX:QFE) shareholders (or potential shareholders) will be happy to see that insider Kenneth Gray recently bought a whopping AU$1.4m worth of stock, at a price of AU$0.41. While that only increased their holding size by -878%, it is still a big swing by our standards.

See our latest analysis for QuickFee

The Last 12 Months Of Insider Transactions At QuickFee

Notably, that recent purchase by Kenneth Gray is the biggest insider purchase of QuickFee shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.27). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Kenneth Gray was also the biggest seller.

Over the last year, we can see that insiders have bought 5.69m shares worth AU$2.2m. On the other hand they divested 350.00k shares, for AU$300k. Overall, QuickFee insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:QFE Insider Trading Volume June 16th 2021

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 29% of QuickFee shares, worth about AU$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At QuickFee Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in QuickFee shares, given these transactions (along with notable insider ownership of the company). 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. Case in point: We've spotted 4 warning signs for QuickFee you should be aware of, and 1 of these makes us a bit uncomfortable.

Of course QuickFee 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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