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Insiders who acquired AU$420.2k worth of Identitii Limited's (ASX:ID8) stock at an average price of AU$0.01 in the past 12 months may be dismayed by the recent 11% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$328.2k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Identitii
The Last 12 Months Of Insider Transactions At Identitii
Over the last year, we can see that the biggest insider purchase was by insider Frederick Bart for AU$206k worth of shares, at about AU$0.01 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.008). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Identitii insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Identitii is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Are Identitii Insiders Buying Or Selling?
Over the last three months, we've seen a bit of insider buying at Identitii. insider Cameron Beavis shelled out AU$11k for shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Identitii insiders own about AU$887k worth of shares. That equates to 18% of the company. 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 Identitii Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Identitii 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. To that end, you should learn about the 4 warning signs we've spotted with Identitii (including 3 which are potentially serious).