Investors who take an interest in SelfWealth Limited (ASX:SWF) should definitely note that insider Nicholas Kephala recently paid AU$0.44 per share to buy AU$286k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
SelfWealth Insider Transactions Over The Last Year
The Founder & Board Advisor, Andrew Ward, made the biggest insider sale in the last 12 months. That single transaction was for AU$4.4m worth of shares at a price of AU$0.56 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.49). So it may not tell us anything about how insiders feel about the current share price. Andrew Ward was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 753.05k shares worth AU$349k. But insiders sold 7.88m shares worth AU$4.4m. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that SelfWealth insiders own 18% of the company, worth about AU$18m. 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 SelfWealth Tell Us?
The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn't so positive. While recent transactions indicate confidence in SelfWealth, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SelfWealth. At Simply Wall St, we found 3 warning signs for SelfWealth that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
If you’re looking to trade SelfWealth, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.