MD, CEO & Director Aaryn Nania Just Bought 7.9% More Shares In Connexion Telematics Ltd (ASX:CXZ)
Even if it's not a huge purchase, we think it was good to see that Aaryn Nania, the MD, CEO & Director of Connexion Telematics Ltd (ASX:CXZ) recently shelled out AU$65k to buy stock, at AU$0.018 per share. However, it only increased their shares held by 7.9%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Connexion Telematics
Connexion Telematics Insider Transactions Over The Last Year
Notably, that recent purchase by Aaryn Nania is the biggest insider purchase of Connexion Telematics shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.019. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Connexion Telematics insiders decided to buy shares at close to current prices.
Connexion Telematics insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.013. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price of AU$0.019. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Connexion Telematics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
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 22% of Connexion Telematics shares, worth about AU$3.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Connexion Telematics Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Connexion Telematics insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Connexion Telematics is showing 4 warning signs in our investment analysis, and 1 of those 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, 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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