CEO, MD & Director of Infomedia Picks Up 23% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Infomedia Ltd (ASX:IFM) CEO, MD & Director, Jens Monsees, recently bought AU$140k worth of stock, for AU$1.44 per share. That purchase might not be huge but it did increase their holding by 23%.

See our latest analysis for Infomedia

The Last 12 Months Of Insider Transactions At Infomedia

Notably, that recent purchase by Jens Monsees is the biggest insider purchase of Infomedia shares that we've seen in the last year. That means that even when the share price was higher than AU$1.36 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.

In the last twelve months Infomedia insiders were buying shares, but not selling. 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. Based on our data, Infomedia insiders have about 1.4% of the stock, worth approximately AU$7.3m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Infomedia Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Infomedia insiders are expecting a bright future. 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. In terms of investment risks, we've identified 2 warning signs with Infomedia and understanding these should be part of your investment process.

Of course Infomedia 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 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.