Non-Executive Director Davide Bosio Just Bought 31% More Shares In Connected IO Limited (ASX:CIO)
Even if it's not a huge purchase, we think it was good to see that Davide Bosio, the Non-Executive Director of Connected IO Limited (ASX:CIO) recently shelled out AU$51k to buy stock, at AU$0.056 per share. That purchase might not be huge but it did increase their holding by 31%.
View our latest analysis for Connected IO
The Last 12 Months Of Insider Transactions At Connected IO
Notably, that recent purchase by Davide Bosio is the biggest insider purchase of Connected IO shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.056). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. 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 Connected IO insiders were buying shares, but not selling. They paid about AU$0.034 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price of AU$0.056. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Connected IO is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Connected IO
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. Insiders own 11% of Connected IO shares, worth about AU$2.0m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Connected IO Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Connected IO insiders are reasonably well aligned, and optimistic for the future. 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. Every company has risks, and we've spotted 3 warning signs for Connected IO (of which 1 can't be ignored!) you should know about.
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.
