Even if it's not a huge purchase, we think it was good to see that Robert Reveley, the Chairman of Structural Monitoring Systems Plc (ASX:SMN) recently shelled out AU$78k to buy stock, at AU$1.05 per share. However, we do note that it only increased their holding by 2.8%, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Structural Monitoring Systems
In fact, the recent purchase by Robert Reveley was the biggest purchase of Structural Monitoring Systems 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 AU$0.98 (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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Robert Reveley was also the biggest seller.
In the last twelve months insiders purchased 159326 shares for AU$155k. But insiders sold 133373 shares worth AU$115k. In total, Structural Monitoring Systems insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Structural Monitoring Systems is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Structural Monitoring Systems Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Structural Monitoring Systems insiders own 16% of the company, worth about AU$18m. 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 Structural Monitoring Systems Insiders?
Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. However, our analysis of transactions over the last year is heartening. Insiders own shares in Structural Monitoring Systems and we see no evidence to suggest they are worried about 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, 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.