Qoria Loses AU$37m Market Value But Insiders See Windfall Of AU$121k

Insiders who bought Qoria Limited (ASX:QOR) in the last 12 months may probably not pay attention to the stock's recent 14% drop. After taking the recent loss into consideration, the AU$725k worth of stock they bought is now worth AU$846k, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Qoria

Qoria Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by MD & Director Timothy Levy for AU$400k worth of shares, at about AU$0.18 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.21. 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.

Qoria insiders may have bought shares in the last year, but they didn't sell any. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Qoria Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Qoria. Not only was there no selling that we can see, but they collectively bought AU$725k worth of shares. This is a positive in our book as it implies some confidence.

Does Qoria Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Qoria insiders own 5.4% of the company, worth about AU$12m. However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Qoria Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Qoria shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Qoria you should know about.

But note: Qoria may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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. 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.