Yahoo Finance Positive Signs As Multiple Insiders Buy SECOS Group Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in SECOS Group Limited's (ASX:SES) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for SECOS Group
SECOS Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Geoffrey Lord for AU$376k worth of shares, at about AU$0.14 per share. That means that an insider was happy to buy shares at above the current price of AU$0.036. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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.
SECOS Group insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.073. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 SECOS Group 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SECOS Group insiders own about AU$8.6m worth of shares (which is 40% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The SECOS Group Insider Transactions Indicate?
It doesn't really mean much that no insider has traded SECOS Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, SECOS Group insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SECOS Group. For instance, we've identified 2 warning signs for SECOS Group (1 shouldn't be ignored) you should be aware of.
But note: SECOS Group 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 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.
