Having purchased AU$923k worth of Bill Identity Limited (ASX:BID) stock, the recent 12% pullback is not what insiders may have expected
The recent 12% drop in Bill Identity Limited's (ASX:BID) stock could come as a blow to insiders who purchased AU$923k worth of stock at an average buy price of AU$0.71 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$325k, which is not great.
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 Bill Identity
The Last 12 Months Of Insider Transactions At Bill Identity
The insider, Guy Maine, made the biggest insider sale in the last 12 months. That single transaction was for AU$602k worth of shares at a price of AU$0.86 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.25). So it is hard to draw any strong conclusion from it. Guy Maine was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 1.30m shares worth AU$923k. On the other hand they divested 700.00k shares, for AU$602k. Overall, Bill Identity insiders were net buyers during the last year. The average buy price was around AU$0.71. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Bill Identity Insiders Bought Stock Recently
Over the last quarter, Bill Identity insiders have spent a meaningful amount on shares. In total, insiders bought AU$131k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Does Bill Identity Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Bill Identity insiders own about AU$2.3m worth of shares (which is 5.5% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
So What Do The Bill Identity Insider Transactions Indicate?
It is good to see recent purchasing. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Bill Identity stock. 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. Case in point: We've spotted 3 warning signs for Bill Identity you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
