Insiders were net buyers of Gas2Grid Limited's (ASX:GGX ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Gas2Grid
In the last twelve months, the biggest single purchase by an insider was when CFO, Company Secretary & Executive Director Wong Voon Sam Yue bought AU$93k worth of shares at a price of AU$0.003 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.002). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Wong Voon Sam Yue was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Gas2Grid is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Gas2Grid
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Gas2Grid insiders own 43% of the company, worth about AU$3.5m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Gas2Grid Insiders?
The fact that there have been no Gas2Grid insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. With high insider ownership and encouraging transactions, it seems like Gas2Grid insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gas2Grid. In terms of investment risks, we've identified 4 warning signs with Gas2Grid and understanding these should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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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