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Trade Alert: The CEO & Executive Director Of De.mem Limited (ASX:DEM), Andreas Kroell, Has Just Spent AU$87k Buying 12% More Shares

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Simply Wall St
·3 min read
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Whilst it may not be a huge deal, we thought it was good to see that the De.mem Limited (ASX:DEM) CEO & Executive Director, Andreas Kroell, recently bought AU$87k worth of stock, for AU$0.24 per share. That purchase might not be huge but it did increase their holding by 12%.

Check out our latest analysis for De.mem

De.mem Insider Transactions Over The Last Year

In fact, the recent purchase by Andreas Kroell was the biggest purchase of De.mem shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$0.28 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the De.mem insider decided to buy shares at close to current prices. Andreas Kroell was the only individual insider to buy shares in the last twelve months.

Andreas Kroell purchased 606.93k shares over the year. The average price per share was AU$0.24. 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!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of De.mem

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. Our data indicates that De.mem insiders own about AU$2.5m worth of shares (which is 5.5% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At De.mem Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give 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 De.mem insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for De.mem and we suggest you have a look.

But note: De.mem 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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.