Richard Tegoni Is The Executive Chairman of SECOS Group Limited (ASX:SES) And They Just Picked Up 63% More Shares

Those following along with SECOS Group Limited (ASX:SES) will no doubt be intrigued by the recent purchase of shares by Richard Tegoni, Executive Chairman of the company, who spent a stonking AU$1.7m on stock at an average price of AU$0.30. That purchase boosted their holding by 63%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for SECOS Group

The Last 12 Months Of Insider Transactions At SECOS Group

In fact, the recent purchase by Richard Tegoni was the biggest purchase of SECOS Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.33. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for SECOS Group share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid AU$1.8m for 6.61m shares. On the other hand they divested 5.31m shares, for AU$893k. Overall, SECOS Group insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 SECOS Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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's great to see that SECOS Group insiders own 46% of the company, worth about AU$84m. 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. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about SECOS Group. Looks promising! 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 these.

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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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.
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