Potential Genetic Technologies Limited (ASX:GTG) shareholders may wish to note that the Independent Non-Executive Chairman, Peter Rubinstein, recently bought AU$315k worth of stock, paying AU$0.0052 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 24%.
Genetic Technologies Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Jimmy Thomas bought AU$1.0m worth of shares at a price of AU$0.009 per share. That means that even when the share price was higher than AU$0.005 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. 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. We note that Jimmy Thomas was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 271.38m shares for AU$1.7m. But insiders sold 14487786 shares worth AU$72k. Overall, Genetic Technologies insiders were net buyers during the last year. Their average price was about AU$0.0062. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Genetic Technologies 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.
Insider Ownership of Genetic Technologies
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. Our data indicates that Genetic Technologies insiders own about AU$4.5m worth of shares (which is 11% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Genetic Technologies Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Genetic Technologies stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for Genetic Technologies (2 shouldn't be ignored) you should be aware of.
Of course Genetic Technologies 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, but not derivative transactions.
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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. 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. Thank you for reading.