Insider Buys Additional AU$120k In Servcorp Stock

Even if it's not a huge purchase, we think it was good to see that Alfred Moufarrige, the Founder of Servcorp Limited (ASX:SRV) recently shelled out AU$120k to buy stock, at AU$5.30 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Servcorp

In fact, the recent purchase by Founder Alfred Moufarrige was not their only acquisition of Servcorp shares this year. Earlier in the year, they paid AU$4.90 per share in a AU$490k purchase. So it's clear an insider wanted to buy, at around the current price, which is AU$5.35. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. Alfred Moufarrige was the only individual insider to buy shares in the last twelve months.

Alfred Moufarrige bought 322.30k shares over the last 12 months at an average price of AU$4.79. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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

Servcorp 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

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Servcorp insiders own about AU$18m worth of shares. That equates to 3.3% 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?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. 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.

But note: Servcorp 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.