Simble Solutions Gains 50%, 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 50% resulting in a AU$1.6m addition to the company’s market value. In other words, the original AU$364.8k purchase is now worth AU$555.5k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Simble Solutions

Simble Solutions Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider John Tarrant for AU$180k worth of shares, at about AU$0.005 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.006. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Simble Solutions insiders were buying shares, but not selling. The average buy price was around AU$0.0039. It is certainly positive to see 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. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Insider Ownership Of Simble Solutions

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Simble Solutions insiders own about AU$2.0m worth of shares (which is 41% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Simble Solutions Insiders?

The fact that there have been no Simble Solutions 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 Simble Solutions insiders think the business has merit. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Simble Solutions (3 are concerning) you should be aware of.

Of course Simble Solutions 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.