Independent Non-Executive Chairman of Emyria Picks Up 1,200% More Stock

Investors who take an interest in Emyria Limited (ASX:EMD) should definitely note that the Independent Non-Executive Chairman, Gregory Hutchinson, recently paid AU$0.05 per share to buy AU$300k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 1,200%, potentially signalling some real optimism.

Check out our latest analysis for Emyria

The Last 12 Months Of Insider Transactions At Emyria

In the last twelve months, the biggest single sale by an insider was when the insider, Sufian Ahmad, sold AU$672k worth of shares at a price of AU$0.04 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.033. So it may not tell us anything about how insiders feel about the current share price. Sufian Ahmad was the only individual insider to sell over the last year. Notably Sufian Ahmad was also the biggest buyer, having purchased AU$1.2m worth of shares.

Happily, we note that in the last year insiders paid AU$1.2m for 21.94m shares. But insiders sold 16.80m shares worth AU$672k. In total, Emyria insiders bought more than they sold over the last year. They paid about AU$0.056 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

Emyria is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Emyria Boast High Insider Ownership?

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. Emyria insiders own about AU$5.1m worth of shares. That equates to 38% of the company. 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 Emyria Insider Transactions Indicate?

The stark truth for Emyria is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Emyria has 7 warning signs (3 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.