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Investors who take an interest in Servcorp Limited (ASX:SRV) should definitely note that the Founder, Alfred Moufarrige, recently paid AU$5.03 per share to buy AU$241k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.6%.
Our free stock report includes 1 warning sign investors should be aware of before investing in Servcorp. Read for free now.
Servcorp Insider Transactions Over The Last Year
In fact, the recent purchase by Founder Alfred Moufarrige was not their only acquisition of Servcorp shares this year. They previously made an even bigger purchase of AU$490k worth of shares at a price of AU$4.90 per share. That means that an insider was happy to buy shares at around the current price of AU$5.04. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider bought shares at close to current prices. Alfred Moufarrige was the only individual insider to buy shares in the last twelve months.
Alfred Moufarrige bought a total of 358.43k shares over the year at an average price of AU$4.85. 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!
Check out our latest analysis for Servcorp
Servcorp is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Servcorp insiders own 3.4% of the company, worth about AU$17m. 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 Servcorp Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Servcorp shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Servcorp. You'd be interested to know, that we found 1 warning sign for Servcorp and we suggest you have a look.