Usually, if one insider buys stock, it might not be a monumental event. However, if multiple insiders are making purchases as in this case, identity limited (ASX:ID8), which sends a positive message to the company's shareholders.
Insider transactions aren't the most important thing when it comes to long-term investing, but logically you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Identityi.
ID insider transactions in the past year
The biggest purchase by an insider in the last twelve months was when insider Frederick Burt bought AU$206k worth of shares at a price of AU$0.01 per share. We are expecting a buy, but this purchase was made well below the current price of AU$0.012. This occurred at a lower valuation, so it doesn't tell us much about whether insiders find today's price attractive.
Identityi insiders may have bought shares in the last year, but they haven't sold any shares. You can see a visual representation of the insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, click on the chart below.
Identity isn't the only stock that insiders are buying.For people who like searching succeed in investing this free This list of growing companies with recent insider purchasing may be just the ticket.
Insider ownership
Looking at the total insider shares in a company can help you determine whether they are well aligned with common shareholders. We generally like to see fairly high levels of insider ownership. It's great to see that Identitii insiders own 40% of the company, worth about AU$2.1m. Most shareholders would welcome this type of insider ownership, as it suggests management incentives are well aligned with other shareholders.
What do the insider transactions at Identitii tell us?
There were no insider transactions in the last three months, which doesn't mean much. However, insiders have indicated that interest in the stock has increased over the last year. Identityi insiders seem to think the business has upside, as high insider ownership is driving trading. So while these insider transactions can help us form a theory about the stock, it's also worth knowing what risks this company faces. For example, we identified 5 warning signs for Identityi (4 Not very compatible) should be noted.
of course, You may find a great investment if you look elsewhere. So take a look at this free List of interesting companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
