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Whilst it may not be a huge deal, we thought it was good to see that the Select Harvests Limited (ASX:SHV) Chairman, Travis Dillon, recently bought AU$100k worth of stock, for AU$3.98 per share. Even though that isn't a massive buy, it did increase their holding by 65%, which is arguably a good sign.
Check out our latest analysis for Select Harvests
The Last 12 Months Of Insider Transactions At Select Harvests
In fact, the recent purchase by Travis Dillon was the biggest purchase of Select Harvests shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$3.94 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Select Harvests 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!
Select Harvests is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Select Harvests Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Select Harvests insiders have about 0.7% of the stock, worth approximately AU$3.7m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Select Harvests Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Select Harvests insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Select Harvests. For instance, we've identified 2 warning signs for Select Harvests (1 doesn't sit too well with us) you should be aware of.