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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Spectur Limited's (ASX:SP3) case, it's fantastic 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 Spectur
Spectur Insider Transactions Over The Last Year
Notably, that recent purchase by Santo Carlini is the biggest insider purchase of Spectur shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.022. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Spectur insiders decided to buy shares at close to current prices.
In the last twelve months Spectur 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!
Spectur is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Spectur Insiders Bought Stock Recently
Over the last quarter, Spectur insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$255k worth of shares. That shows some optimism about the company's future.
Insider Ownership Of Spectur
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. 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 appears that Spectur insiders own 28% of the company, worth about AU$1.8m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Spectur Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Spectur we think they are probably pretty confident of 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. For example, Spectur has 3 warning signs (and 1 which is potentially serious) we think you should know about.