Yahoo Finance Trade Alert: Jason Carroll At Rent.com.au Limited (ASX:RNT), Has Just Spent AU$247k Buying 20% More Shares
Investors who take an interest in Rent.com.au Limited (ASX:RNT) should definitely note that insider Jason Carroll recently paid AU$0.044 per share to buy AU$247k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 20%.
View our latest analysis for Rent.com.au
Rent.com.au Insider Transactions Over The Last Year
Notably, that recent purchase by Jason Carroll is the biggest insider purchase of Rent.com.au shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.048. 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. The good news for Rent.com.au share holders is that insiders were buying at near the current price. Notably Jason Carroll was also the biggest seller.
Happily, we note that in the last year insiders paid AU$523k for 12.30m shares. But they sold 77.46k shares for AU$1.2k. In the last twelve months there was more buying than selling by Rent.com.au insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Rent.com.au is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. Rent.com.au insiders own about AU$6.8m worth of shares (which is 41% of the company). 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 Do The Rent.com.au Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. 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. When combined with notable insider ownership, these factors suggest Rent.com.au insiders are well aligned, and quite possibly think the share price is too low. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Rent.com.au has 4 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.
Of course Rent.com.au 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.
This article by Simply Wall St is general in nature. 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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