It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Plexure Group Limited's (NZSE:PX1) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Plexure Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Craig Herbison, for NZ$325k worth of shares, at about NZ$0.43 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is NZ$0.36. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 1.28m shares for NZ$546k. But they sold 1.05m shares for NZ$502k. Overall, Plexure Group insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Plexure Group Have Bought Stock Recently
It's good to see that Plexure Group insiders have made notable investments in the company's shares. In total, insiders bought NZ$436k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership Of Plexure 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. Plexure Group insiders own 44% of the company, currently worth about NZ$56m based on the recent share price. 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 Do The Plexure Group Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Plexure Group. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Plexure Group. For instance, we've identified 5 warning signs for Plexure Group (2 are potentially serious) you should be aware of.
But note: Plexure Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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