Potential Adveritas Limited (ASX:AV1) shareholders may wish to note that the CEO & Director, Mathew Ratty, recently bought AU$250k worth of stock, paying AU$0.17 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 11%.
Adveritas Insider Transactions Over The Last Year
In fact, the recent purchase by CEO & Director Mathew Ratty was not their only acquisition of Adveritas shares this year. Earlier in the year, they paid AU$0.10 per share in a AU$300k purchase. Even though the purchase was made at a significantly lower price than the recent price (AU$0.16), 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.
Mathew Ratty purchased 4.47m shares over the year. The average price per share was AU$0.12. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Does Adveritas Boast High 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. From our data, it seems that Adveritas insiders own 15% of the company, worth about AU$5.0m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Adveritas Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Adveritas insiders are reasonably well aligned, and optimistic for the future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.
Of course Adveritas 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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