Locate Technologies Insiders Are Down AU$25k But Regain Some Losses

Insiders who purchased AU$185.8k worth of Locate Technologies Limited (ASX:LOC) shares over the past year recouped some of their losses after price gained 15% last week. However, total losses seen by insiders are still AU$25k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Locate Technologies Insider Transactions Over The Last Year

The Founder Stephen Orenstein made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.07 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.06). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Locate Technologies insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Locate Technologies

Locate Technologies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Locate Technologies Have Bought Stock Recently

It's good to see that Locate Technologies insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$162k worth of shares. This makes one think the business has some good points.

Does Locate Technologies Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Locate Technologies insiders own 55% of the company, currently worth about AU$6.6m 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.

So What Do The Locate Technologies Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. 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 Locate Technologies insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Locate Technologies. Our analysis shows 4 warning signs for Locate Technologies (3 are significant!) and we strongly recommend you look at these before investing.

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.