Scott Technology Loses NZ$27m Market Value But Insiders See Windfall Of NZ$64k

Insiders who bought Scott Technology Limited (NZSE:SCT) stock lover the last 12 months are probably not as affected by last week’s 10% loss. After accounting for the recent loss, the NZ$106.4k worth of shares they purchased is now worth NZ$170.2k, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Scott Technology

Over the last year, we can see that the biggest insider purchase was by Chief Executive Officer Mike Christman for NZ$93k worth of shares, at about NZ$1.75 per share. Even though the purchase was made at a significantly lower price than the recent price (NZ$2.80), 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.

Scott Technology insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Scott Technology

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Scott Technology insiders own 2.1% of the company, worth about NZ$4.9m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Scott Technology Tell Us?

It doesn't really mean much that no insider has traded Scott Technology shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Scott Technology insiders bought more shares in the company. 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 assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Scott Technology.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.