Yahoo Finance Bullish Redbubble Limited (ASX:RBL) insiders filled their treasuries with AU$977k worth of stock over last year
Quite a few insiders have dramatically grown their holdings in Redbubble Limited (ASX:RBL) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
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 Redbubble
The Last 12 Months Of Insider Transactions At Redbubble
In the last twelve months, the biggest single purchase by an insider was when insider John Lewis bought AU$756k worth of shares at a price of AU$1.09 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.41). 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. In our view, the price an insider pays for shares is very important. 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. Notably John Lewis was also the biggest seller.
Over the last year, we can see that insiders have bought 1.12m shares worth AU$977k. On the other hand they divested 2.36k shares, for AU$2.1k. In the last twelve months there was more buying than selling by Redbubble insiders. Their average price was about AU$0.87. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Redbubble is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Redbubble Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Redbubble insiders own about AU$23m worth of shares. That equates to 20% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Redbubble Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Redbubble shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Redbubble insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Redbubble. For example - Redbubble has 2 warning signs we think you should be aware of.
Of course Redbubble 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, 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.
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