Stock Analysis

Insider Buying: The Teaminvest Private Group Limited (ASX:TIP) Non-Executive Director Just Bought 2.8% More Shares

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Even if it's not a huge purchase, we think it was good to see that Howard Coleman, the Non-Executive Director of Teaminvest Private Group Limited (ASX:TIP) recently shelled out AU$60k to buy stock, at AU$0.68 per share. However, it only increased their shares held by 2.8%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Teaminvest Private Group

Notably, that recent purchase by Non-Executive Director Howard Coleman was not the only time they bought Teaminvest Private Group shares this year. Earlier in the year, they paid AU$0.65 per share in a AU$98k purchase. So it's clear an insider wanted to buy, at around the current price, which is AU$0.69. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Teaminvest Private Group share holders is that insiders were buying at near the current price.

Teaminvest Private Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ASX:TIP Insider Trading Volume March 6th 2021

Teaminvest Private 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

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Teaminvest Private Group insiders own about AU$11m worth of shares (which is 14% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Teaminvest Private Group Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Teaminvest Private Group shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Teaminvest Private Group.

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.

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