When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Generation Development Group Limited's (ASX:GDG) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Generation Development Group
Generation Development Group Insider Transactions Over The Last Year
The Non-Executive Director William Bessemer made the biggest insider purchase in the last 12 months. That single transaction was for AU$132k worth of shares at a price of AU$1.32 each. That means that even when the share price was higher than AU$1.24 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.
Generation Development Group insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and 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 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).
Does Generation Development Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Generation Development Group insiders own 29% of the company, worth about AU$67m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Generation Development Group Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Generation Development Group insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Generation Development Group. Our analysis shows 2 warning signs for Generation Development Group (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.