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Insider Buying: The Redbubble Limited (ASX:RBL) Independent Non-Executive Director Just Bought 150% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Redbubble Limited (ASX:RBL) Independent Non-Executive Director, Benjamin Heap, recently bought AU$144k worth of stock, for AU$0.48 per share. While that isn't the hugest buy, it actually boosted their shareholding by 150%, which is good to see.

Check out our latest analysis for Redbubble

The Last 12 Months Of Insider Transactions At Redbubble

The Co-Founder & Non-Executive Director Martin Hosking made the biggest insider purchase in the last 12 months. That single transaction was for AU$803k worth of shares at a price of AU$1.70 each. That means that even when the share price was higher than AU$0.54 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.

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Redbubble insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$1.27 on average. This is nice to see since it implies that insiders might see value around current prices. 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!

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

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Redbubble insiders own 19% of the company, worth about AU$28m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Redbubble Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Redbubble shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Redbubble has 3 warning signs and it would be unwise to ignore them.

But note: Redbubble 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.

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

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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