Simble Solutions Gains 25%, Insider Trades Reap Benefit

Simble Solutions Limited (ASX:SIS) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 25% resulting in a AU$1.9m addition to the company’s market value. In other words, the original AU$191.3k purchase is now worth AU$225.0k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Simble Solutions Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Amarandhar Kotha for AU$191k worth of shares, at about AU$0.0043 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.005. 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.

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 Simble Solutions

Simble Solutions is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 30% of Simble Solutions shares, worth about AU$1.6m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Simble Solutions Insider Transactions Indicate?

The fact that there have been no Simble Solutions insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Simble Solutions insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Simble Solutions. Every company has risks, and we've spotted 5 warning signs for Simble Solutions you should know about.

But note: Simble Solutions 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 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.