Reedy Lagoon Insiders Still AU$155k Away From Original Investment Value
Insiders who purchased AU$242.4k worth of Reedy Lagoon Corporation Limited (ASX:RLC) shares over the past year recouped some of their losses after price gained 25% last week. However, total losses seen by insiders are still AU$155k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Reedy Lagoon
The Last 12 Months Of Insider Transactions At Reedy Lagoon
In the last twelve months, the biggest single purchase by an insider was when insider Leon Serry bought AU$242k worth of shares at a price of AU$0.044 per share. That means that even when the share price was higher than AU$0.005 (the recent price), an insider wanted to purchase shares. 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. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Leon Serry.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Reedy Lagoon 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.
Does Reedy Lagoon Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Reedy Lagoon insiders own 41% of the company, currently worth about AU$1.3m 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.
What Might The Insider Transactions At Reedy Lagoon Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Reedy Lagoon insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Reedy Lagoon. Case in point: We've spotted 5 warning signs for Reedy Lagoon you should be aware of, and 4 of these are significant.
Of course Reedy Lagoon may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
