Nasdaq
華爾街日報Several Insiders Invested In IDP Education Flagging Positive News
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 IDP Education Limited (ASX:IEL), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At IDP Education
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Paul Rogan for AU$253k worth of shares, at about AU$5.63 per share. That means that an insider was happy to buy shares at around the current price of AU$5.73. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the IDP Education insiders decided to buy shares at close to current prices.
IDP Education insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$5.02 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for IDP Education
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does IDP Education Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, IDP Education insiders have about 0.2% of the stock, worth approximately AU$2.9m. We consider this fairly low insider ownership.
What Might The Insider Transactions At IDP Education Tell Us?
It doesn't really mean much that no insider has traded IDP Education shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more IDP Education stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IDP Education. In terms of investment risks, we've identified 1 warning sign with IDP Education and understanding it should be part of your investment process.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.