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Benjamin Graham of Excelsior Capital Limited (ASX:ECL) Just Spent AU$171k On Shares

Simply Wall St
·3 min read

Potential Excelsior Capital Limited (ASX:ECL) shareholders may wish to note that insider Benjamin Graham recently bought AU$171k worth of stock, paying AU$1.55 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 314%, potentially signalling some real optimism.

Check out our latest analysis for Excelsior Capital

Excelsior Capital Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Director Leanne Catelan for AU$395k worth of shares, at about AU$1.28 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$1.55. 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. Happily, the Excelsior Capital insiders decided to buy shares at close to current prices.

Over the last year, we can see that insiders have bought 1.12m shares worth AU$1.5m. On the other hand they divested 70.00k shares, for AU$92k. In the last twelve months there was more buying than selling by Excelsior Capital insiders. 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!

insider-trading-volume
insider-trading-volume

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. Excelsior Capital insiders own 60% of the company, currently worth about AU$27m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Excelsior Capital Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Excelsior Capital. One for the watchlist, at least! 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 help with this, we've discovered 3 warning signs (1 is potentially serious!) that you ought to be aware of before buying any shares in Excelsior Capital.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.