Are Insiders Buying Indoor Skydive Australia Group Limited (ASX:IDZ) Stock?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Indoor Skydive Australia Group Limited (ASX:IDZ).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
See our latest analysis for Indoor Skydive Australia Group
The Last 12 Months Of Insider Transactions At Indoor Skydive Australia Group
Over the last year, we can see that the biggest insider purchase was by insider Alexander Damien Beard for AU$230k worth of shares, at about AU$0.0098 per share. That means that an insider was happy to buy shares at above the current price of AU$0.008. Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
In the last twelve months insiders purchased 47.64m shares for AU$472k. On the other hand they divested 1200000 shares, for AU$23k. In the last twelve months there was more buying than selling by Indoor Skydive Australia Group insiders. 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!
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).
Have Indoor Skydive Australia Group Insiders Traded Recently?
Over the last three months, we've seen a bit of insider buying at Indoor Skydive Australia Group. insider Kim Hopwood purchased AU$10.0k worth of shares in that period. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of Indoor Skydive Australia Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Indoor Skydive Australia Group insiders own about AU$502k worth of shares. That equates to 25% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Indoor Skydive Australia Group Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Indoor Skydive Australia Group insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 7 warning signs for Indoor Skydive Australia Group you should be aware of, and 5 of them are concerning.
Of course Indoor Skydive Australia Group 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
