Independent Non-Executive Director Nicola Beattie Just Bought 86% More Shares In IRESS Limited (ASX:IRE)
Whilst it may not be a huge deal, we thought it was good to see that the IRESS Limited (ASX:IRE) Independent Non-Executive Director, Nicola Beattie, recently bought AU$52k worth of stock, for AU$9.95 per share. Even though that isn't a massive buy, it did increase their holding by 86%, which is arguably a good sign.
Check out our latest analysis for IRESS
IRESS Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Trudy Vonhoff for AU$133k worth of shares, at about AU$12.05 per share. That means that an insider was happy to buy shares at above the current price of AU$9.53. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While IRESS insiders bought shares during the last year, they didn't sell. 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 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.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that IRESS insiders own 0.4% of the company, worth about AU$7.7m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About IRESS Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that IRESS insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IRESS. Be aware that IRESS is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
But note: IRESS 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, 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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