Stock Analysis

Bradley Gerdis Is The Executive Officer of Smartpay Holdings Limited (NZSE:SPY) And They Just Picked Up 1.1% More Shares

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NZSE:SPY
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Whilst it may not be a huge deal, we thought it was good to see that the Smartpay Holdings Limited (NZSE:SPY) Executive Officer, Bradley Gerdis, recently bought NZ$52k worth of stock, for NZ$0.73 per share. However, it only increased their shares held by 1.1%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Smartpay Holdings

In fact, the recent purchase by Bradley Gerdis was the biggest purchase of Smartpay Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than NZ$0.70 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Bradley Gerdis was the only individual insider to buy during the last year.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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NZSE:SPY Insider Trading Volume November 30th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Smartpay Holdings insiders own 9.5% of the company, worth about NZ$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Smartpay Holdings Insiders?

The recent insider purchase is heartening. 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. When combined with notable insider ownership, these factors suggest Smartpay Holdings insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Smartpay Holdings.

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, but not derivative transactions.

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