Alfred Moufarrige Bought 1.6% More Shares In Servcorp

Potential Servcorp Limited (ASX:SRV) shareholders may wish to note that the Founder, Alfred Moufarrige, recently bought AU$241k worth of stock, paying AU$5.03 for each share. Although the purchase only increased their holding by 1.6%, it is still a solid purchase in our view.

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The Last 12 Months Of Insider Transactions At Servcorp

Notably, that recent purchase by Founder Alfred Moufarrige was not the only time they bought Servcorp shares this year. Earlier in the year, they paid AU$4.90 per share in a AU$490k purchase. That implies that an insider found the current price of AU$5.04 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Servcorp share holders is that an insider was buying at near the current price. Alfred Moufarrige was the only individual insider to buy shares in the last twelve months.

Alfred Moufarrige purchased 358.43k shares over the year. The average price per share was AU$4.85. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Servcorp

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

Does Servcorp Boast High Insider Ownership?

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. Servcorp insiders own about AU$17m worth of shares. That equates to 3.4% 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.

What Might The Insider Transactions At Servcorp Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Servcorp we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Servcorp 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 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.