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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Silk Logistics Holdings Limited (ASX:SLH), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Silk Logistics Holdings
The Last 12 Months Of Insider Transactions At Silk Logistics Holdings
Over the last year, we can see that the biggest insider purchase was by Co-Founder & Non Executive Director Brendan Boyd for AU$152k worth of shares, at about AU$1.50 per share. That means that an insider was happy to buy shares at above the current price of AU$1.43. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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.
Silk Logistics Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Silk Logistics Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 28% of Silk Logistics Holdings shares, worth about AU$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Silk Logistics Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Silk Logistics Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Silk Logistics Holdings and we see no evidence to suggest they are worried about the future. 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. Case in point: We've spotted 5 warning signs for Silk Logistics Holdings you should be aware of, and 1 of these is a bit concerning.