Trade Alert: Scobie Dickinson Ward At Straker Translations Limited (ASX:STG), Has Just Spent NZ$604k Buying 8.7% More Shares

Investors who take an interest in Straker Translations Limited (ASX:STG) should definitely note that insider Scobie Dickinson Ward recently paid AU$1.03 per share to buy AU$604k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 8.7%.

Check out our latest analysis for Straker Translations

Straker Translations Insider Transactions Over The Last Year

Notably, that recent purchase by insider Scobie Dickinson Ward was not the only time they bought Straker Translations shares this year. They previously made an even bigger purchase of AU$1.1m worth of shares at a price of AU$0.85 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$1.61), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Scobie Dickinson Ward bought a total of 3.62m shares over the year at an average price of AU$0.88. 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!

Straker Translations 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 Straker Translations

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Straker Translations insiders own 52% of the company, worth about AU$45m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Straker Translations Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Straker Translations insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Straker Translations.

Of course Straker Translations may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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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