Insiders who bought RPMGlobal Holdings Limited (ASX:RUL) last year must be regretting not buying more as market cap hits AU$498m

By
Simply Wall St
Published
November 10, 2021
ASX:RUL
Source: Shutterstock

Insiders who bought RPMGlobal Holdings Limited (ASX:RUL) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$46m as a result of the stock's 10% gain over the same period. In other words, the original AU$99k purchase is now worth AU$143k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for RPMGlobal Holdings

RPMGlobal Holdings Insider Transactions Over The Last Year

There wasn't any very large single transaction over the last year, but we can still observe some trading.

While RPMGlobal Holdings insiders bought shares during the last year, they didn't sell. Their average price was about AU$1.48. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels, which is around AU$2.15. 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!

insider-trading-volume
ASX:RUL Insider Trading Volume November 11th 2021

RPMGlobal 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.

RPMGlobal Holdings Insiders Bought Stock Recently

There was some insider buying at RPMGlobal Holdings over the last quarter. Independent Non-Executive Director Angeleen Jenkins bought AU$44k worth of shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does RPMGlobal Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. RPMGlobal Holdings insiders own about AU$52m worth of shares. That equates to 10% of the company. 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 RPMGlobal Holdings Insiders?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think RPMGlobal Holdings insiders are doubting the company, and they do own shares. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

But note: RPMGlobal Holdings 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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