Shan Kanji Bought 15% More Shares In Spirit Technology Solutions

Spirit Technology Solutions Ltd (ASX:ST1) shareholders (or potential shareholders) will be happy to see that the Non-Executive Director, Shan Kanji, recently bought a whopping AU$4.7m worth of stock, at a price of AU$0.053. Not only is that a big swing, but it increased their holding size by 15%, which is definitely great to see.

Check out our latest analysis for Spirit Technology Solutions

The Last 12 Months Of Insider Transactions At Spirit Technology Solutions

Notably, that recent purchase by Non-Executive Director Shan Kanji was not the only time they bought Spirit Technology Solutions shares this year. Earlier in the year, they paid AU$0.05 per share in a AU$16m purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.057. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 561.84m shares worth AU$29m. On the other hand they divested 9.00m shares, for AU$479k. In total, Spirit Technology Solutions 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Spirit Technology Solutions 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.

Does Spirit Technology Solutions 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. It's great to see that Spirit Technology Solutions insiders own 69% of the company, worth about AU$72m. 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 Spirit Technology Solutions Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Spirit Technology Solutions. Nice! 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. To that end, you should learn about the 3 warning signs we've spotted with Spirit Technology Solutions (including 2 which are significant).

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.