Whilst it may not be a huge deal, we thought it was good to see that the RBR Group Limited (ASX:RBR) Non-Executive Director, Athol Emerton, recently bought AU$70k worth of stock, for AU$0.014 per share. That might not be a big purchase but it only increased their holding by 5.4%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At RBR Group
In fact, the recent purchase by Athol Emerton was the biggest purchase of RBR Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$0.016. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for RBR Group share holders is that insiders were buying at near the current price. Notably Athol Emerton was also the biggest seller.
Over the last year, we can see that insiders have bought 35997712 shares worth AU$388k. But they sold 3162539 for AU$12k. Overall, RBR Group insiders were net buyers last year. Their average price was about AU$0.011. It is certainly positive to see 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$0.016. You can see the insider transactions (by 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!
RBR Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Insiders own 33% of RBR Group shares, worth about AU$4.2m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At RBR Group Tell Us?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in RBR Group shares, given these transactions (along with notable insider ownership of the company). Along with insider transactions, I recommend checking if RBR Group is growing revenue. This free chart of historic revenue and earnings should make that easy.
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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