Jayride Group Insiders Lose Out As Stock Sinks To AU$0.009

The recent 18% drop in Jayride Group Limited's (ASX:JAY) stock could come as a blow to insiders who purchased AU$151.4k worth of stock at an average buy price of AU$0.048 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$28.3k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Jayride Group

Jayride Group Insider Transactions Over The Last Year

The Co-Founder & Non-Executive Director Rodney Bishop made the biggest insider purchase in the last 12 months. That single transaction was for AU$119k worth of shares at a price of AU$0.065 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.009). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Jayride Group insiders were buying shares, but not selling. They paid about AU$0.048 on average. These transactions suggest that insiders have considered the current price attractive. 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!

Jayride Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Are Jayride Group Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider buying at Jayride Group. Co-Founder & Non-Executive Director Rodney Bishop bought AU$12k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Jayride Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 19% of Jayride Group shares, worth about AU$410k. 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 Do The Jayride Group Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Jayride Group insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 7 warning signs for Jayride Group (5 are a bit concerning!) that we believe deserve your full attention.

Of course Jayride Group 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.