Trade Alert: The Non-Executive Chairman of the Board Of Urbanise.com Limited (ASX:UBN), Almero Strauss, Has Just Spent AU$54k Buying 30% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Urbanise.com Limited (ASX:UBN) Non-Executive Chairman of the Board, Almero Strauss, recently bought AU$54k worth of stock, for AU$0.077 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 30%.

View our latest analysis for Urbanise.com

Urbanise.com Insider Transactions Over The Last Year

Notably, that recent purchase by Almero Strauss is the biggest insider purchase of Urbanise.com shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.077. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Almero Strauss was the only individual insider to buy shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Urbanise.com is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Urbanise.com 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Urbanise.com insiders have about 4.1% of the stock, worth approximately AU$2.6m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

What Might The Insider Transactions At Urbanise.com Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Urbanise.com insiders are reasonably well aligned, and optimistic for the 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. In terms of investment risks, we've identified 3 warning signs with Urbanise.com and understanding them should be part of your investment process.

Of course Urbanise.com 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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