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Insiders who acquired AU$286k worth of SelfWealth Limited's (ASX:SWF) stock at an average price of AU$0.44 in the past 12 months may be dismayed by the recent 12% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$143k, which is not great.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for SelfWealth
The Last 12 Months Of Insider Transactions At SelfWealth
In the last twelve months, the biggest single purchase by an insider was when insider Nicholas Kephala bought AU$286k worth of shares at a price of AU$0.44 per share. That means that an insider was happy to buy shares at above the current price of AU$0.22. 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Nicholas Kephala.
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!
SelfWealth is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does SelfWealth Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 14% of SelfWealth shares, worth about AU$7.2m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Do The SelfWealth Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more SelfWealth stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SelfWealth. You'd be interested to know, that we found 2 warning signs for SelfWealth and we suggest you have a look.