Insider Spends AU$490k Buying More Shares In Servcorp

Potential Servcorp Limited (ASX:SRV) shareholders may wish to note that the Founder, Alfred Moufarrige, recently bought AU$490k worth of stock, paying AU$4.90 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.6%.

Check out our latest analysis for Servcorp

Servcorp Insider Transactions Over The Last Year

Notably, that recent purchase by Founder Alfred Moufarrige was not the only time they bought Servcorp shares this year. They previously made an even bigger purchase of AU$1.7m worth of shares at a price of AU$4.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$4.93. 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.

Alfred Moufarrige bought a total of 569.76k shares over the year at an average price of AU$4.16. 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!

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

Insider Ownership

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. Insiders own 3.1% of Servcorp shares, worth about AU$15m. 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 Does This Data Suggest About Servcorp Insiders?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Servcorp insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. At Simply Wall St, we found 1 warning sign for Servcorp that deserve your attention before buying any shares.

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.