Yahoo Finance Trade Alert: Kyle Haynes At RBR Group Limited (ASX:RBR), Has Just Spent AU$106k Buying 53% More Shares
Even if it's not a huge purchase, we think it was good to see that Kyle Haynes, a RBR Group Limited (ASX:RBR) insider, recently shelled out AU$106k to buy stock, at AU$0.005 per share. Even though that isn't a massive buy, it did increase their holding by 53%, which is arguably a good sign.
Check out our latest analysis for RBR Group
RBR Group Insider Transactions Over The Last Year
In fact, the recent purchase by Kyle Haynes was the biggest purchase of RBR Group shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.006. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
RBR Group insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.0056 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insider Ownership of RBR Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. RBR Group insiders own about AU$3.1m worth of shares (which is 40% 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 Does This Data Suggest About RBR Group Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about RBR Group. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 7 warning signs for RBR Group (5 are a bit concerning!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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