With RocketBoots Up 32%, Insider Buyers Count Their Returns

Insiders who bought RocketBoots Limited (ASX:ROC) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$6.9m as a result of the stock's 32% gain over the same period. As a result, their original purchase of AU$200.0k worth of stock is now worth AU$388.2k.

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.

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RocketBoots Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chair Roy McKelvie for AU$200k worth of shares, at about AU$0.085 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.17. 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.

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!

Check out our latest analysis for RocketBoots

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

Does RocketBoots 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. RocketBoots insiders own about AU$14m worth of shares (which is 48% of the company). 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 Does This Data Suggest About RocketBoots Insiders?

The fact that there have been no RocketBoots insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like RocketBoots insiders think the business has merit. 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. Case in point: We've spotted 6 warning signs for RocketBoots you should be aware of, and 4 of these don't sit too well with us.

Of course RocketBoots 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.