The MD & CEO of Splitit Payments Ltd (ASX:SPT), Nandan Sheth, Just Bought A Few More Shares

Potential Splitit Payments Ltd (ASX:SPT) shareholders may wish to note that the MD & CEO, Nandan Sheth, recently bought AU$315k worth of stock, paying AU$0.18 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Splitit Payments

The Last 12 Months Of Insider Transactions At Splitit Payments

In fact, the recent purchase by Nandan Sheth was the biggest purchase of Splitit Payments shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.16 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

Over the last year, we can see that insiders have bought 4.54m shares worth AU$795k. On the other hand they divested 48.50k shares, for AU$6.3k. In total, Splitit Payments insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Splitit Payments Boast High 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 12% of Splitit Payments shares, worth about AU$10m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Splitit Payments Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Splitit Payments we think they are probably pretty confident of a bright future. 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 3 warning signs for Splitit Payments (1 is potentially serious) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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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.