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 Bill Identity Limited (ASX:BID), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Bill Identity
Bill Identity Insider Transactions Over The Last Year
The Independent Non-Executive Director David Hancock made the biggest insider purchase in the last 12 months. That single transaction was for AU$450k worth of shares at a price of AU$0.10 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.07). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
While Bill Identity insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Bill Identity Insiders Bought Stock Recently
Over the last quarter, Bill Identity insiders have spent a meaningful amount on shares. Overall, four insiders shelled out AU$600k for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership Of Bill Identity
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Bill Identity insiders own 12% of the company, worth about AU$2.0m. 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!
So What Does This Data Suggest About Bill Identity Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Bill Identity insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bill Identity. Case in point: We've spotted 5 warning signs for Bill Identity you should be aware of, and 2 of them are a bit unpleasant.