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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 Synertec Corporation Limited (ASX:SOP), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Synertec
Synertec Insider Transactions Over The Last Year
The Non-Executive Director Johannes Risseeuw made the biggest insider purchase in the last 12 months. That single transaction was for AU$127k worth of shares at a price of AU$0.072 each. That means that even when the share price was higher than AU$0.065 (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. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Synertec insiders may have bought shares in the last year, but they didn't sell any. 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!
Synertec is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Synertec Insiders Bought Stock Recently
Over the last quarter, Synertec insiders have spent a meaningful amount on shares. Overall, two insiders shelled out AU$207k for shares in the company -- and none sold. That shows some optimism about the company's future.
Does Synertec Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 10% of Synertec shares, worth about AU$3.4m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Synertec Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Synertec insiders are expecting a bright future. 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. Our analysis shows 4 warning signs for Synertec (2 are a bit concerning!) and we strongly recommend you look at these before investing.