Yahoo Finance Trade Alert: The Independent Non-Executive Director Of Titomic Limited (ASX:TTT), Dag W. Stromme, Has Just Spent AU$70k Buying 32% More Shares
Even if it's not a huge purchase, we think it was good to see that Dag W. Stromme, the Independent Non-Executive Director of Titomic Limited (ASX:TTT) recently shelled out AU$70k to buy stock, at AU$0.26 per share. That purchase might not be huge but it did increase their holding by 32%.
View our latest analysis for Titomic
Titomic Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Richard Fox for AU$81k worth of shares, at about AU$0.50 per share. That means that an insider was happy to buy shares at above the current price of AU$0.18. 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. 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.
Titomic insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.36. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and 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 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 of Titomic
Many investors like to check how much of a company is owned by 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. Insiders own 19% of Titomic shares, worth about AU$7.2m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Titomic Tell Us?
It is good to see recent purchasing. 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. Given that insiders also own a fair bit of Titomic we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Titomic (of which 1 doesn't sit too well with us!) you should know about.
Of course Titomic 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, 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.
