A number of insiders bought RAS Technology Holdings Limited (ASX:RTH) stock last year, which is great news for shareholders
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in RAS Technology Holdings Limited's (ASX:RTH) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for RAS Technology Holdings
The Last 12 Months Of Insider Transactions At RAS Technology Holdings
While no particular insider transaction stood out, we can still look at the overall trading.
RAS Technology Holdings insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.58. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price of AU$0.75. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
RAS Technology Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At RAS Technology Holdings Have Bought Stock Recently
We saw some RAS Technology Holdings insider buying shares in the last three months. Insiders shelled out AU$51k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. RAS Technology Holdings insiders own about AU$22m worth of shares (which is 63% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About RAS Technology Holdings Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about RAS Technology Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RAS Technology Holdings. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of RAS Technology Holdings.