We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Invigor Group Limited (ASX:IVO), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Invigor Group
Invigor Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Yun Ye bought AU$300k worth of shares at a price of AU$0.006 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.002). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 149.8m shares for AU$699k. On the other hand they divested 3.8m shares, for AU$15k. Overall, Invigor Group insiders were net buyers last year. Their average price was about AU$0.0047. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by 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!
Invigor Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Invigor Group Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Invigor Group. We can see that CFO & Executive Director Gregory Cohen paid AU$99k for shares in the company. But we did see Gregory Cohen sell shares worth AU$15k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.