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Whilst it may not be a huge deal, we thought it was good to see that the Infomedia Ltd (ASX:IFM) CEO, MD & Director, Jens Monsees, recently bought AU$140k worth of stock, for AU$1.44 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 23%.
See our latest analysis for Infomedia
The Last 12 Months Of Insider Transactions At Infomedia
Notably, that recent purchase by Jens Monsees is the biggest insider purchase of Infomedia shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$1.35. 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.
In the last twelve months Infomedia insiders were buying shares, but not selling. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own AU$7.4m worth of Infomedia stock, about 1.5% of the company. We prefer to see high levels of insider ownership.
So What Do The Infomedia Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Infomedia insiders are expecting a bright 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. At Simply Wall St, we found 2 warning signs for Infomedia that deserve your attention before buying any shares.
But note: Infomedia may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.