Stock Analysis

As Regal Partners Limited's (ASX:RPL) market cap increased AU$74m, insiders who bought last year may be reflecting on buying more

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Insiders who bought Regal Partners Limited (ASX:RPL) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$74m as a result of the stock's 10% gain over the same period. As a result, the stock they originally bought for AU$559k is now worth AU$675k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Regal Partners

The Last 12 Months Of Insider Transactions At Regal Partners

Over the last year, we can see that the biggest insider purchase was by Chief Executive Officer Brendan O’Connor for AU$299k worth of shares, at about AU$2.60 per share. We do like to see buying, but this purchase was made at well below the current price of AU$3.14. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 215.00k shares worth AU$559k. But they sold 100.00k shares for AU$260k. In the last twelve months there was more buying than selling by Regal Partners insiders. 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!

ASX:RPL Insider Trading Volume March 24th 2023

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Regal Partners Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Regal Partners insiders own about AU$614m worth of shares (which is 77% 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.

What Might The Insider Transactions At Regal Partners Tell Us?

The fact that there have been no Regal Partners insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Regal Partners insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Regal Partners and we suggest you have a look.

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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Find out whether Regal Partners is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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