Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Tempo Australia Limited (ASX:TPP), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Tempo Australia
The Last 12 Months Of Insider Transactions At Tempo Australia
Over the last year, we can see that the biggest insider sale was by the insider, Anthony Barton, for AU$588k worth of shares, at about AU$0.074 per share. That means that an insider was selling shares at slightly below the current price (AU$0.077). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 25% of Anthony Barton's holding. The only individual insider seller over the last year was Anthony Barton.
In the last twelve months insiders purchased 11.88m shares for AU$902k. On the other hand they divested 8.00m shares, for AU$588k. In total, Tempo Australia insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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).
Tempo Australia Insiders Bought Stock Recently
Over the last quarter, Tempo Australia insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$394k for shares in the company -- and none sold. That shows some optimism about the company's future.
Insider Ownership of Tempo Australia
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Tempo Australia insiders own 49% of the company, worth about AU$14m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.