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Insiders were net buyers of Uscom Limited's (ASX:UCM ) stock during the past year. That is, insiders bought more stock than they sold.
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.
See our latest analysis for Uscom
The Last 12 Months Of Insider Transactions At Uscom
Over the last year, we can see that the biggest insider purchase was by Founder Robert Phillips for AU$1.1m worth of shares, at about AU$0.11 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.082). 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 an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Robert Phillips was the only individual insider to buy during the last year.
Robert Phillips purchased 10.47m shares over the year. The average price per share was AU$0.11. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Uscom 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.
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. It's great to see that Uscom insiders own 51% of the company, worth about AU$8.2m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Uscom Insiders?
It doesn't really mean much that no insider has traded Uscom shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Uscom insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Uscom. Case in point: We've spotted 4 warning signs for Uscom you should be aware of.