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CEO, MD & Director Julian Challingsworth Just Bought 257% More Shares In Spirit Technology Solutions Ltd (ASX:ST1)

·3 min read

Even if it's not a huge purchase, we think it was good to see that Julian Challingsworth, the CEO, MD & Director of Spirit Technology Solutions Ltd (ASX:ST1) recently shelled out AU$120k to buy stock, at AU$0.075 per share. Even though that isn't a massive buy, it did increase their holding by 257%, which is arguably a good sign.

See our latest analysis for Spirit Technology Solutions

The Last 12 Months Of Insider Transactions At Spirit Technology Solutions

In the last twelve months, the biggest single sale by an insider was when the insider, Peter Diamond, sold AU$540k worth of shares at a price of AU$0.045 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.07. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 14% of Peter Diamond's holding. Peter Diamond was the only individual insider to sell shares in the last twelve months. Notably Peter Diamond was also the biggest buyer, having purchased AU$963k worth of shares.

Over the last year, we can see that insiders have bought 17.02m shares worth AU$963k. On the other hand they divested 12.00m shares, for AU$540k. In the last twelve months there was more buying than selling by Spirit Technology Solutions insiders. Their average price was about AU$0.057. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. 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!

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 Of Spirit Technology Solutions

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 Spirit Technology Solutions insiders own 21% of the company, worth about AU$9.7m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Spirit Technology Solutions Insiders?

The recent insider purchases are heartening. 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. Insiders likely see value in Spirit Technology Solutions shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Spirit Technology Solutions has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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

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.

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