Insider Buying: Kenneth Gray Just Spent AU$1.4m On QuickFee Limited (ASX:QFE) Shares
QuickFee Limited (ASX:QFE) shareholders (or potential shareholders) will be happy to see that insider Kenneth Gray recently bought a whopping AU$1.4m worth of stock, at a price of AU$0.41. While that only increased their holding size by -878%, it is still a big swing by our standards.
See our latest analysis for QuickFee
QuickFee Insider Transactions Over The Last Year
Notably, that recent purchase by Kenneth Gray is the biggest insider purchase of QuickFee shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$0.27. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Kenneth Gray was also the biggest seller.
In the last twelve months insiders purchased 5.69m shares for AU$2.2m. But they sold 350.00k shares for AU$300k. In the last twelve months there was more buying than selling by QuickFee insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
QuickFee 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 QuickFee
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. QuickFee insiders own about AU$17m worth of shares. That equates to 29% 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 QuickFee Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of QuickFee we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for QuickFee you should be aware of, and 1 of these is a bit concerning.
But note: QuickFee may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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.
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