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Insider Buying: The Smartpay Holdings Limited (NZSE:SPY) Executive Officer Just Bought 1.1% More Shares

Simply Wall St
·3-min read

Whilst it may not be a huge deal, we thought it was good to see that the Smartpay Holdings Limited (NZSE:SPY) Executive Officer, Bradley Gerdis, recently bought NZ$52k worth of stock, for NZ$0.73 per share. However, it only increased their shares held by 1.1%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Smartpay Holdings

Smartpay Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Bradley Gerdis is the biggest insider purchase of Smartpay Holdings shares that we've seen in the last year. That means that even when the share price was higher than NZ$0.70 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Bradley Gerdis was the only individual insider to buy shares in the last twelve months.

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!

insider-trading-volume
insider-trading-volume

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 Smartpay Holdings 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. Smartpay Holdings insiders own about NZ$15m worth of shares. That equates to 9.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Smartpay Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Smartpay Holdings insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Smartpay Holdings and we suggest you have a look.

Of course Smartpay Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.