Insider Stock Buying Reaches AU$1.1m On ImExHS
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 ImExHS Limited (ASX:IME), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for ImExHS
The Last 12 Months Of Insider Transactions At ImExHS
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Damian Banks for AU$299k worth of shares, at about AU$0.48 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.60. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months ImExHS insiders were buying shares, but not selling. 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!
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).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 39% of ImExHS shares, worth about AU$9.6m. 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 ImExHS Insider Transactions Indicate?
It doesn't really mean much that no insider has traded ImExHS shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in ImExHS and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ImExHS. Case in point: We've spotted 4 warning signs for ImExHS you should be aware of, and 2 of them are a bit concerning.
Of course ImExHS 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. 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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