The Deputy Chairman of the Board of Joyce Corporation Ltd (ASX:JYC), Karen Gadsby, Just Bought 27% More Shares

Joyce Corporation Ltd (ASX:JYC) shareholders (or potential shareholders) will be happy to see that the Deputy Chairman of the Board, Karen Gadsby, recently bought a whopping AU$2.2m worth of stock, at a price of AU$166. Not only is that a big swing, but it increased their holding size by 27%, which is definitely great to see.

See our latest analysis for Joyce

Joyce Insider Transactions Over The Last Year

Notably, that recent purchase by Karen Gadsby is the biggest insider purchase of Joyce shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$1.79. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 238.61k shares worth AU$2.5m. But insiders sold 500.00k shares worth AU$763k. In total, Joyce insiders bought more than they sold over the last year. The average buy price was around AU$10.50. 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!

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 Joyce

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Joyce insiders own 52% of the company, currently worth about AU$27m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Joyce Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Joyce insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Joyce. Case in point: We've spotted 2 warning signs for Joyce you should be aware of.

But note: Joyce 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, but not derivative transactions.

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