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Insiders who acquired AU$4.2m worth of Alcidion Group Limited's (ASX:ALC) stock at an average price of AU$0.34 in the past 12 months may be dismayed by the recent 13% price decline. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$2.2m, which is not what they expected.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Alcidion Group
The Last 12 Months Of Insider Transactions At Alcidion Group
In the last twelve months, the biggest single purchase by an insider was when insider Katrina Dolye bought AU$3.9m worth of shares at a price of AU$0.34 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.17). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.
While Alcidion Group insiders bought shares during the last year, they didn't sell. 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 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
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 32% of Alcidion Group shares, worth about AU$70m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Alcidion Group Insiders?
It doesn't really mean much that no insider has traded Alcidion Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Alcidion Group and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alcidion Group. At Simply Wall St, we found 2 warning signs for Alcidion Group that deserve your attention before buying any shares.