Stock Analysis

Non-Executive Director of SECOS Group Picks Up 6.8% More Stock

Published
ASX:SES
Source: Shutterstock

Potential SECOS Group Limited (ASX:SES) shareholders may wish to note that the Non-Executive Director, Donald Haller, recently bought AU$203k worth of stock, paying AU$0.065 for each share. Although the purchase only increased their holding by 6.8%, it is still a solid purchase in our view.

View our latest analysis for SECOS Group

SECOS Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Geoffrey Lord bought AU$500k worth of shares at a price of AU$0.065 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.042). 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While SECOS Group insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
ASX:SES Insider Trading Volume December 11th 2023

SECOS Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of SECOS Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that SECOS Group insiders own 40% of the company, worth about AU$10m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About SECOS Group Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about SECOS Group. That's what I like to see! 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. While conducting our analysis, we found that SECOS Group has 2 warning signs and it would be unwise to ignore them.

But note: SECOS Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

Valuation is complex, but we're helping make it simple.

Find out whether SECOS Group 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.

View the Free Analysis