Investors who take an interest in Technology One Limited (ASX:TNE) should definitely note that the Deputy Chair & Lead Independent Director, Patrick Redmond O'Sullivan, recently paid AU$10.27 per share to buy AU$249k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 156%.
The Last 12 Months Of Insider Transactions At Technology One
In fact, the recent purchase by Patrick Redmond O'Sullivan was the biggest purchase of Technology One shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$10.67 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Patrick Redmond O'Sullivan was the only individual insider to buy during the last year.
Patrick Redmond O'Sullivan purchased 39.78k shares over the year. The average price per share was AU$9.81. 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!
Technology One 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 Technology One Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Technology One insiders own about AU$485m worth of shares (which is 14% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Technology One Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Technology One. One for the watchlist, at least! Of course, the future is what matters most. So if you are interested in Technology One, you should check out this free report on analyst forecasts for the company.
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.
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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.