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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of IXUP Limited (ASX:IXU), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for IXUP
IXUP Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman & Member of the Advisory Board Julian Babarczy bought AU$85k worth of shares at a price of AU$0.015 per share. That implies that an insider found the current price of AU$0.015 per share to be enticing. 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. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
While IXUP insiders bought shares during the last year, they didn't sell. They paid about AU$0.02 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
IXUP is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
IXUP Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at IXUP. In total, insiders bought AU$118k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that IXUP insiders own about AU$2.2m worth of shares (which is 9.8% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!