Trade Alert: Scobie Dickinson Ward At Straker Translations Limited (ASX:STG), Has Just Spent NZ$1.4m Buying 11% More Shares

Straker Translations Limited (ASX:STG) shareholders (or potential shareholders) will be happy to see that insider Scobie Dickinson Ward recently bought a whopping AU$1.4m worth of stock, at a price of AU$1.75. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 11%.

View our latest analysis for Straker Translations

The Last 12 Months Of Insider Transactions At Straker Translations

Notably, that recent purchase by Scobie Dickinson Ward is the biggest insider purchase of Straker Translations shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.79). 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. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Scobie Dickinson Ward was the only individual insider to buy during the last year.

Scobie Dickinson Ward bought 4.44m shares over the last 12 months at an average price of AU$1.04. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Straker Translations

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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 Straker Translations insiders own 52% of the company, worth about AU$49m. 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 Straker Translations Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. 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 Straker Translations. Looks promising! While we like knowing 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. You'd be interested to know, that we found 3 warning signs for Straker Translations and we suggest you have a look.

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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