Insider Buying: The InvestSMART Group Limited (ASX:INV) MD, CEO & Executive Director Just Bought 5.4% More Shares
Even if it's not a huge purchase, we think it was good to see that Peter Hodge, the MD, CEO & Executive Director of InvestSMART Group Limited (ASX:INV) recently shelled out AU$118k to buy stock, at AU$0.17 per share. However, it only increased their shares held by 5.4%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for InvestSMART Group
InvestSMART Group Insider Transactions Over The Last Year
Notably, that recent purchase by MD, CEO & Executive Director Peter Hodge was not the only time they bought InvestSMART Group shares this year. Earlier in the year, they paid AU$0.085 per share in a AU$272k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.19. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Peter Hodge bought a total of 5.30m shares over the year at an average price of AU$0.11. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of InvestSMART Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 34% of InvestSMART Group shares, worth about AU$9.4m. 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 Do The InvestSMART Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of InvestSMART Group we think they are probably pretty confident of a bright future. 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 example - InvestSMART Group has 3 warning signs we think you should be aware of.
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
