Great news for Integral Diagnostics Limited (ASX:IDX): Insiders acquired stock in large numbers last year
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Integral Diagnostics Limited (ASX:IDX), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Integral Diagnostics
The Last 12 Months Of Insider Transactions At Integral Diagnostics
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Andrew Fay for AU$114k worth of shares, at about AU$2.87 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$3.01. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Integral Diagnostics share holders is that insiders were buying at near the current price.
Integral Diagnostics insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Integral Diagnostics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Integral Diagnostics
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Integral Diagnostics insiders own about AU$16m worth of shares. That equates to 2.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Integral Diagnostics Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Integral Diagnostics insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Integral Diagnostics has 1 warning sign 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.
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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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