Yahoo Finance Bullish Integral Diagnostics Limited (ASX:IDX) insiders filled their treasuries with AU$810k worth of stock over last year
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 Integral Diagnostics Limited (ASX:IDX), 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 would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Integral Diagnostics
The Last 12 Months Of Insider Transactions At Integral Diagnostics
In the last twelve months, the biggest single purchase by an insider was when CEO, MD & Director Ian Kadish bought AU$301k worth of shares at a price of AU$3.44 per share. That means that even when the share price was higher than AU$2.81 (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 Integral Diagnostics 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Integral Diagnostics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Integral Diagnostics Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Integral Diagnostics. Not only was there no selling that we can see, but they collectively bought AU$149k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Integral Diagnostics insiders own about AU$15m worth of shares (which is 2.3% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Integral Diagnostics Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Integral Diagnostics we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Integral Diagnostics and understanding them should be part of your investment process.
But note: Integral Diagnostics 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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