Excite Technology Services Decline Means Insider Profits Down To AU$46k

Excite Technology Services Limited (ASX:EXT) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 13% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of AU$162.5k is now worth AU$208.7k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Excite Technology Services

The Last 12 Months Of Insider Transactions At Excite Technology Services

In the last twelve months, the biggest single purchase by an insider was when insider Carl Charalambous bought AU$118k worth of shares at a price of AU$0.0057 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.007), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Excite Technology Services insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insiders At Excite Technology Services Have Bought Stock Recently

It's good to see that Excite Technology Services insiders have made notable investments in the company's shares. Specifically, insider Carl Charalambous bought AU$118k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Excite Technology Services insiders own 50% of the company, worth about AU$4.9m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Excite Technology Services Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Excite Technology Services insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing 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. When we did our research, we found 4 warning signs for Excite Technology Services (3 are a bit unpleasant!) that we believe deserve your full attention.

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.