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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of SRJ Technologies Group Plc (ASX:SRJ), it sends a favourable message to the company's shareholders.
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 SRJ Technologies Group
SRJ Technologies Group Insider Transactions Over The Last Year
The Non-Executive Chair Robin Pinchbeck made the biggest insider purchase in the last 12 months. That single transaction was for AU$193k worth of shares at a price of AU$0.11 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.06). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
SRJ Technologies Group insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
SRJ Technologies Group Insiders Bought Stock Recently
Over the last quarter, SRJ Technologies Group insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$214k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of SRJ Technologies Group
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. SRJ Technologies Group insiders own 58% of the company, currently worth about AU$6.2m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.