Insider Buying: Duncan Saville Just Spent AU$1.2m On Thorn Group Limited (ASX:TGA) Shares

Thorn Group Limited (ASX:TGA) shareholders (or potential shareholders) will be happy to see that insider Duncan Saville recently bought a whopping AU$1.2m worth of stock, at a price of AU$0.19. That increased their holding by a full 89%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for Thorn Group

Thorn Group Insider Transactions Over The Last Year

In fact, the recent purchase by Duncan Saville was the biggest purchase of Thorn Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.18). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Thorn Group insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.22. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Thorn Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Thorn Group insiders own about AU$4.2m worth of shares (which is 6.7% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Thorn Group Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Thorn Group insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Thorn Group. At Simply Wall St, we've found that Thorn Group has 4 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course Thorn Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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