It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Excite Technology Services Limited’s (ASX:EXT) case, it’s fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Excite Technology Services
Excite Technology Services Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Carl Charalambous, for AU$124k worth of shares, at about AU$0.0082 per share. That means that even when the share price was below the current price of AU$0.009, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. We note that the biggest single sale was only 18% of Carl Charalambous’s holding. Carl Charalambous was the only individual insider to sell over the last year. Notably Carl Charalambous was also the biggest buyer, having purchased AU$132k worth of shares.
Over the last year, we can see that insiders have bought 22.20m shares worth AU$132k. But insiders sold 15.18m shares worth AU$124k. In the last twelve months there was more buying than selling by Excite Technology Services insiders. 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!
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).
Have Excite Technology Services Insiders Traded Recently?
There was some insider buying at Excite Technology Services over the last quarter. Insiders purchased AU$14k worth of shares in that period. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It’s great to see that Excite Technology Services insiders own 43% of the company, worth about AU$6.1m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Excite Technology Services Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Excite Technology Services insiders feel good about the company’s future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To help with this, we’ve discovered 3 warning signs (2 are a bit concerning!) that you ought to be aware of before buying any shares in Excite Technology Services.
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.