Insiders Give Up AU$43k As StreamPlay Studio Stock Drops To AU$0.012

The recent 14% drop in StreamPlay Studio Limited's (ASX:SP8) stock could come as a blow to insiders who purchased AU$259.9k worth of stock at an average buy price of AU$0.014 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$216.6k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At StreamPlay Studio

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director Paolo Privitera bought AU$245k worth of shares at a price of AU$0.015 per share. That means that an insider was happy to buy shares at above the current price of AU$0.012. 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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Paolo Privitera was the only individual insider to buy during the last year.

Paolo Privitera purchased 18.05m shares over the year. The average price per share was AU$0.014. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for StreamPlay Studio

StreamPlay Studio 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 35% of StreamPlay Studio shares, worth about AU$5.4m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The StreamPlay Studio Insider Transactions Indicate?

The fact that there have been no StreamPlay Studio insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in StreamPlay Studio and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 4 warning signs for StreamPlay Studio (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.

But note: StreamPlay Studio 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.