Rent.com.au Non-Executive Director Acquires 20% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Rent.com.au Limited (ASX:RNT) Non-Executive Director, John Wood, recently bought AU$128k worth of stock, for AU$0.02 per share. That purchase might not be huge but it did increase their holding by 20%.

See our latest analysis for Rent.com.au

Rent.com.au Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Bevan Slattery for AU$192k worth of shares, at about AU$0.038 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.019). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Rent.com.au insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.021. This is nice to see since it implies that insiders might see value around current prices. 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!

Rent.com.au is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Rent.com.au

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Rent.com.au insiders own about AU$5.9m worth of shares (which is 48% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Rent.com.au Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Rent.com.au. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Rent.com.au has 5 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

But note: Rent.com.au 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.

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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