CEO, MD & Director of Spirit Technology Solutions Julian Challingsworth Buys 29% More Shares
Investors who take an interest in Spirit Technology Solutions Ltd (ASX:ST1) should definitely note that the CEO, MD & Director, Julian Challingsworth, recently paid AU$0.058 per share to buy AU$212k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 29%.
View our latest analysis for Spirit Technology Solutions
Spirit Technology Solutions Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Chief Executive Officer of Nexgen James Harb for AU$2.3m worth of shares, at about AU$0.064 per share. That means that an insider was happy to buy shares at above the current price of AU$0.056. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid AU$3.0m for 49.60m shares. On the other hand they divested 5.00m shares, for AU$308k. Overall, Spirit Technology Solutions insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does Spirit Technology Solutions Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Spirit Technology Solutions insiders own about AU$15m worth of shares. That equates to 37% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Spirit Technology Solutions Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. 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. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Spirit Technology Solutions.
Of course Spirit Technology Solutions 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 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.
