Yahoo Finance Trade Alert: The Non-Executive Director Of QEM Limited (ASX:QEM), David Fitch, Has Just Spent AU$57k Buying A Few More Shares
Even if it's not a huge purchase, we think it was good to see that David Fitch, the Non-Executive Director of QEM Limited (ASX:QEM) recently shelled out AU$57k to buy stock, at AU$0.19 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for QEM
QEM Insider Transactions Over The Last Year
Notably, that recent purchase by Non-Executive Director David Fitch was not the only time they bought QEM shares this year. Earlier in the year, they paid AU$0.15 per share in a AU$580k purchase. We do like to see buying, but this purchase was made at well below the current price of AU$0.18. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
David Fitch bought a total of 4.17m shares over the year at an average price of AU$0.15. 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!
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 QEM
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that QEM insiders own 55% of the company, worth about AU$11m. 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 QEM Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about QEM. 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. Our analysis shows 5 warning signs for QEM (2 shouldn't be ignored!) and we strongly recommend you look at them before investing.
Of course QEM 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.
