Non-Executive Director of Spirit Technology Solutions Picks Up 220% More Stock

Those following along with Spirit Technology Solutions Ltd (ASX:ST1) will no doubt be intrigued by the recent purchase of shares by Shan Kanji, Non-Executive Director of the company, who spent a stonking AU$16m on stock at an average price of AU$0.05. That purchase boosted their holding by 220%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for Spirit Technology Solutions

The Last 12 Months Of Insider Transactions At Spirit Technology Solutions

In fact, the recent purchase by Shan Kanji was the biggest purchase of Spirit Technology Solutions shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$0.05. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 447.69m shares for AU$22m. But insiders sold 4.00m shares worth AU$197k. Overall, Spirit Technology Solutions insiders were net buyers during 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Spirit Technology Solutions

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Spirit Technology Solutions insiders own 54% of the company, worth about AU$20m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Spirit Technology Solutions Insider Transactions Indicate?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Spirit Technology Solutions. That's what I like to see! While we like knowing 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. Be aware that Spirit Technology Solutions is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

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.