Insiders At Senetas See Good Returns After Buying Stock Worth AU$970.6k

Insiders who purchased Senetas Corporation Limited (ASX:SEN) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of AU$970.6k is now worth AU$1.59m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Senetas

The Last 12 Months Of Insider Transactions At Senetas

Over the last year, we can see that the biggest insider purchase was by Founder & Non Executive Chairman Francis Galbally for AU$811k worth of shares, at about AU$0.014 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.023), 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.

While Senetas insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Senetas Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Senetas insiders own 19% of the company, worth about AU$7.0m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Senetas Insiders?

It doesn't really mean much that no insider has traded Senetas shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Senetas and their transactions don't cause us concern. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 5 warning signs for Senetas (2 are a bit concerning!) that we believe deserve your full attention.

Of course Senetas 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.