Insider Buying: The ImExHS Limited (ASX:IME) Independent Non-Executive Director Just Bought 8.7% More Shares
Even if it's not a huge purchase, we think it was good to see that Douglas Lingard, the Independent Non-Executive Director of ImExHS Limited (ASX:IME) recently shelled out AU$99k to buy stock, at AU$2.02 per share. However, it only increased their shares held by 8.7%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for ImExHS
ImExHS Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Damian Banks bought AU$173k worth of shares at a price of AU$2.20 per share. That means that even when the share price was higher than AU$1.82 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Damian Banks was both the biggest buyer and the biggest seller.
Over the last year, we can see that insiders have bought 469.79k shares worth AU$811k. On the other hand they divested 68.34k shares, for AU$150k. In total, ImExHS insiders bought more than they sold over the last year. They paid about AU$1.73 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!
ImExHS 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.
Does ImExHS Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that ImExHS insiders own 23% of the company, worth about AU$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About ImExHS Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of ImExHS we think they are probably pretty confident of 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. Every company has risks, and we've spotted 3 warning signs for ImExHS you should know about.
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. 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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