Insider Returns Down To AU$135k As Spacetalk's Stock Dips 12%
Spacetalk Limited (ASX:SPA) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. After accounting for the recent loss, the AU$542.0k worth of shares they purchased is now worth AU$677.5k, suggesting a good return on their investment.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Spacetalk
The Independent Non-Executive Director Andrew Grover made the biggest insider purchase in the last 12 months. That single transaction was for AU$492k worth of shares at a price of AU$0.06 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.075. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Spacetalk insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Spacetalk
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Spacetalk
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Spacetalk insiders own 12% of the company, worth about AU$1.8m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Spacetalk Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Spacetalk stock. 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. For instance, we've identified 4 warning signs for Spacetalk (3 can't be ignored) you should be aware of.
But note: Spacetalk 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 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.