GenusPlus Group Limited (ASX:GNP) shareholders (or potential shareholders) will be happy to see that the Founder, David Riches, recently bought a whopping AU$920k worth of stock, at a price of AU$0.92. While that only increased their holding size by 1.1%, it is still a big swing by our standards.
GenusPlus Group Insider Transactions Over The Last Year
In fact, the recent purchase by David Riches was the biggest purchase of GenusPlus Group 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$0.92 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. David Riches was the only individual insider to buy shares in the last twelve months.
David Riches bought 1.86m shares over the last 12 months at an average price of AU$1.04. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 GenusPlus Group 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that GenusPlus Group insiders own 71% of the company, worth about AU$115m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The GenusPlus Group Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about GenusPlus Group. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GenusPlus Group. At Simply Wall St, we found 1 warning sign for GenusPlus Group that deserve your attention before buying any shares.
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.
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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.
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