Quite a few insiders invested in RPM Automotive Group Limited (ASX:RPM) last year which is positive news for shareholders
In This Article:
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 RPM Automotive Group Limited (ASX:RPM), it sends a favourable message to the company's 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.
View our latest analysis for RPM Automotive Group
RPM Automotive Group Insider Transactions Over The Last Year
While no particular insider transaction stood out, we can still look at the overall trading.
Happily, we note that in the last year insiders paid AU$125k for 408.00k shares. But insiders sold 102.54k shares worth AU$32k. In the last twelve months there was more buying than selling by RPM Automotive Group insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does RPM Automotive Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. RPM Automotive Group insiders own about AU$7.2m worth of shares. That equates to 16% of the company. 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 Does This Data Suggest About RPM Automotive Group Insiders?
It doesn't really mean much that no insider has traded RPM Automotive Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in RPM Automotive Group and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing RPM Automotive Group. You'd be interested to know, that we found 2 warning signs for RPM Automotive Group and we suggest you have a look.
But note: RPM Automotive Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.