I Synergy Group Insider Buyers Pleased With AU$6.3m Return On Investment

I Synergy Group Limited (ASX:IS3) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 25% decline in the stock price. After taking the recent loss into consideration, the AU$1.04m worth of stock they bought is now worth AU$7.30m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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I Synergy Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when MD & Director Jee Heng bought AU$600k worth of shares at a price of AU$0.012 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.015), we still think insider buying is a positive. 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.

Over the last year, we can see that insiders have bought 486.42m shares worth AU$1.0m. But insiders sold 10.62m shares worth AU$127k. In the last twelve months there was more buying than selling by I Synergy Group insiders. They paid about AU$0.0021 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for I Synergy Group

I Synergy Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does I Synergy Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. I Synergy Group insiders own about AU$16m worth of shares (which is 61% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At I Synergy Group Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like I Synergy Group insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing I Synergy Group. Every company has risks, and we've spotted 5 warning signs for I Synergy Group (of which 4 are potentially serious!) you should know about.

Of course I Synergy 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 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.