We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Registry Direct Limited (ASX:RD1).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Registry Direct
The Last 12 Months Of Insider Transactions At Registry Direct
The Chairman, Donald McLay, made the biggest insider sale in the last 12 months. That single transaction was for AU$105k worth of shares at a price of AU$0.03 each. That means that even when the share price was below the current price of AU$0.04, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 11.6% of Donald McLay's holding. Donald McLay was the only individual insider to sell over the last year. Notably Donald McLay was also the biggest buyer, having purchased AU$30k worth of shares.
You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Registry Direct Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Registry Direct. Chairman Donald McLay bought AU$23k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.