Yahoo Finance Who Has Been Buying Starpharma Holdings Limited (ASX:SPL) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Starpharma Holdings Limited (ASX:SPL), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Starpharma Holdings
Want to help shape the future of investing tools and platforms? Take the survey and be part of one of the most advanced studies of stock market investors to date.
The Last 12 Months Of Insider Transactions At Starpharma Holdings
There wasn’t any very large single transaction over the last year, but we can still observe some trading.
Happily, we note that in the last year insiders paid AU$320k for 272.98k shares. But they sold 37.14k for AU$51k. In total, Starpharma Holdings insiders bought more than they sold over the last year. Their average price was about AU$1.17. These transactions suggest that insiders have considered the current price of AU$1.15 attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. 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.
Starpharma Holdings Insiders Bought Stock Recently
Over the last quarter, Starpharma Holdings insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$105k worth of shares. That shows some optimism about the company’s future.
Does Starpharma Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Starpharma Holdings insiders own about AU$19m worth of shares. That equates to 4.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Starpharma Holdings Insiders?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. Insiders likely see value in Starpharma Holdings shares, given these transactions (along with notable insider ownership of the company). I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
