Bullish Complii FinTech Solutions Ltd (ASX:CF1) insiders filled their treasuries with AU$850k worth of stock over last year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Complii FinTech Solutions Ltd (ASX:CF1), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Complii FinTech Solutions
The Last 12 Months Of Insider Transactions At Complii FinTech Solutions
The insider, Jason Peterson, made the biggest insider sale in the last 12 months. That single transaction was for AU$240k worth of shares at a price of AU$0.04 each. That means that even when the share price was below the current price of AU$0.10, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 27% of Jason Peterson's holding. The only individual insider seller over the last year was Jason Peterson.
In the last twelve months insiders purchased 16.41m shares for AU$850k. On the other hand they divested 8.41m shares, for AU$361k. In the last twelve months there was more buying than selling by Complii FinTech Solutions insiders. Their average price was about AU$0.052. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Complii FinTech Solutions insiders own 41% of the company, worth about AU$17m. 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 Complii FinTech Solutions Insider Transactions Indicate?
The fact that there have been no Complii FinTech Solutions insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Complii FinTech Solutions insiders think the business has merit. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Complii FinTech Solutions has 5 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
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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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.