Yahoo Finance An Insider Of Quantum Graphite Picks Up 6.2% More Stock
Potential Quantum Graphite Limited (ASX:QGL) shareholders may wish to note that insider Salvatore Catalano recently bought AU$704k worth of stock, paying AU$0.55 for each share. Although the purchase only increased their holding by 6.2%, it is still a solid purchase in our view.
Check out our latest analysis for Quantum Graphite
The Last 12 Months Of Insider Transactions At Quantum Graphite
The insider Ian Roch Pattison made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.2m worth of shares at a price of AU$0.60 each. That means that an insider was happy to buy shares at around the current price of AU$0.65. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Quantum Graphite insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 6.09m shares for AU$3.3m. But they sold 2.27m shares for AU$1.2m. In total, Quantum Graphite insiders bought more than they sold over the last year. The average buy price was around AU$0.54. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does Quantum Graphite Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 27% of Quantum Graphite shares, worth about AU$60m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Quantum Graphite Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Quantum Graphite insiders are well aligned, and that they may think the share price is too low. 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. To that end, you should learn about the 3 warning signs we've spotted with Quantum Graphite (including 2 which are concerning).
Of course Quantum Graphite 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
