Insider Stock Buying Reaches AU$8.83m On Spirit Technology Solutions
Over the last year, a good number of insiders have significantly increased their holdings in Spirit Technology Solutions Ltd (ASX:ST1). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Spirit Technology Solutions
The Last 12 Months Of Insider Transactions At Spirit Technology Solutions
The Non-Executive Director Shan Kanji made the biggest insider purchase in the last 12 months. That single transaction was for AU$6.0m worth of shares at a price of AU$0.053 each. That means that even when the share price was higher than AU$0.046 (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. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 163.13m shares worth AU$8.8m. On the other hand they divested 4.00m shares, for AU$197k. Overall, Spirit Technology Solutions insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insiders At Spirit Technology Solutions Have Sold Stock Recently
There was substantially more insider selling, than buying, of Spirit Technology Solutions shares over the last three months. In total, insider Peter Diamond sold AU$197k worth of shares in that time. Meanwhile Non-Executive Director Lynn Warneke bought AU$19k worth. We don't view these transactions as a positive sign.
Insider Ownership Of Spirit Technology Solutions
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. Spirit Technology Solutions insiders own about AU$19m worth of shares (which is 54% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Spirit Technology Solutions Insiders?
Unfortunately, there has been more insider selling of Spirit Technology Solutions stock, than buying, in the last three months. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Spirit Technology Solutions (including 1 which is potentially serious).
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
