Despite XPON Technologies Group's Pullback, Insiders Still Gained AU$101k

Insiders who bought XPON Technologies Group Limited (ASX:XPN) stock lover the last 12 months are probably not as affected by last week’s 14% loss. Reason being, despite the recent loss, insiders original purchase value of AU$217.6k is now worth AU$318.3k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At XPON Technologies Group

In the last twelve months, the biggest single purchase by an insider was when insider Antanas Guoga bought AU$200k worth of shares at a price of AU$0.008 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.012), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 26.53m shares worth AU$218k. But insiders sold 325.00k shares worth AU$3.3k. In total, XPON Technologies Group insiders bought more than they sold over the last year. 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!

Check out our latest analysis for XPON Technologies Group

XPON Technologies Group 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.

Insiders At XPON Technologies Group Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at XPON Technologies Group. In fact, two insiders bought AU$214k worth of shares. On the other hand, Independent Non-Executive Director Jamie Olsen netted AU$3.3k by selling. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership Of XPON Technologies Group

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that XPON Technologies Group insiders own 40% of the company, worth about AU$2.4m. 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 Do The XPON Technologies Group Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest XPON Technologies Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 5 warning signs for XPON Technologies Group you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.