Meredith George Just Bought 8.2% More Shares In Rhinomed Limited (ASX:RNO)
Potential Rhinomed Limited (ASX:RNO) shareholders may wish to note that insider Meredith George recently bought AU$372k worth of stock, paying AU$0.11 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 8.2%.
Check out our latest analysis for Rhinomed
The Last 12 Months Of Insider Transactions At Rhinomed
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director John McBain bought AU$925k worth of shares at a price of AU$0.19 per share. That means that even when the share price was higher than AU$0.09 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
In the last twelve months Rhinomed insiders were buying shares, but not selling. Their average price was about AU$0.17. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Rhinomed 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
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. Rhinomed insiders own 67% of the company, currently worth about AU$17m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Rhinomed Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Rhinomed insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rhinomed. At Simply Wall St, we've found that Rhinomed has 4 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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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