The CEO & Executive Director of De.mem Limited (ASX:DEM), Andreas Kroell, Just Bought 12% More Shares

Even if it's not a huge purchase, we think it was good to see that Andreas Kroell, the CEO & Executive Director of De.mem Limited (ASX:DEM) recently shelled out AU$87k to buy stock, at AU$0.24 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 12%.

See our latest analysis for De.mem

The Last 12 Months Of Insider Transactions At De.mem

In fact, the recent purchase by Andreas Kroell was the biggest purchase of De.mem shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.28. That means they have been optimistic about the company in the past, though they may have changed their mind. 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 bought shares at close to current prices. Andreas Kroell was the only individual insider to buy shares in the last twelve months.

Andreas Kroell bought a total of 606.93k shares over the year at an average price of AU$0.24. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that De.mem insiders own 5.5% of the company, worth about AU$2.5m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At De.mem Tell Us?

It is good to see the recent insider purchase. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that De.mem insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing De.mem. While conducting our analysis, we found that De.mem has 3 warning signs and it would be unwise to ignore them.

Of course De.mem 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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