Alternate Non-Executive Director Mark Summerhayes Just Bought A Handful Of Shares In ReadyTech Holdings Limited (ASX:RDY)

Investors who take an interest in ReadyTech Holdings Limited (ASX:RDY) should definitely note that the Alternate Non-Executive Director, Mark Summerhayes, recently paid AU$1.87 per share to buy AU$187k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for ReadyTech Holdings

ReadyTech Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Mark Summerhayes is the biggest insider purchase of ReadyTech Holdings shares that we've seen in the last year. That means that even when the share price was higher than AU$1.83 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

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

ReadyTech Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. It appears that ReadyTech Holdings insiders own 10% of the company, worth about AU$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About ReadyTech Holdings Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in ReadyTech Holdings shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ReadyTech Holdings. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of ReadyTech Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.
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