Quantum Graphite Insiders Added AU$1.55m Of Stock To Their Holdings

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Quantum Graphite Limited (ASX:QGL), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Quantum Graphite

Quantum Graphite Insider Transactions Over The Last Year

The insider Salvatore Catalano made the biggest insider purchase in the last 12 months. That single transaction was for AU$704k worth of shares at a price of AU$0.55 each. So it's clear an insider wanted to buy, at around the current price, which is AU$0.58. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

Over the last year, we can see that insiders have bought 2.82m shares worth AU$1.6m. But insiders sold 1.16m shares worth AU$598k. In total, Quantum Graphite insiders bought more than they sold over 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!

Quantum Graphite is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Quantum Graphite Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. It appears that Quantum Graphite insiders own 28% of the company, worth about AU$54m. 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 Does This Data Suggest About Quantum Graphite Insiders?

It doesn't really mean much that no insider has traded Quantum Graphite shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Quantum Graphite and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Quantum Graphite. Case in point: We've spotted 2 warning signs for Quantum Graphite you should be aware of.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com