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In the last year, multiple insiders have substantially increased their holdings of Senetas Corporation Limited (ASX:SEN) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Senetas
Senetas Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Non Executive Chairman Francis Galbally for AU$811k worth of shares, at about AU$0.014 per share. That means that an insider was happy to buy shares at around the current price of AU$0.014. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Senetas insiders decided to buy shares at close to current prices.
In the last twelve months Senetas insiders were buying shares, but not selling. 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!
Senetas is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Senetas
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Senetas insiders own about AU$3.9m worth of shares. That equates to 18% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Senetas Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Senetas shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Senetas insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 5 warning signs (2 are significant!) that you ought to be aware of before buying any shares in Senetas.