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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Rent.com.au Limited (ASX:RNT), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Rent.com.au
The Last 12 Months Of Insider Transactions At Rent.com.au
Over the last year, we can see that the biggest insider purchase was by Jason Carroll for AU$206k worth of shares, at about AU$0.05 per share. That means that even when the share price was higher than AU$0.027 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 12.9m shares for AU$720k. But insiders sold 588k shares worth AU$31k. Overall, Rent.com.au insiders were net buyers last year. The average buy price was around AU$0.056. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, 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.
Rent.com.au Insiders Bought Stock Recently
It's good to see that Rent.com.au insiders have made notable investments in the company's shares. Specifically, Jason Carroll bought AU$206k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.