Great news for PhosCo Ltd (ASX:PHO): Insiders acquired stock in large numbers last year

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in PhosCo Ltd's (ASX:PHO) instance, it's good news for 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.

Check out our latest analysis for PhosCo

PhosCo Insider Transactions Over The Last Year

The Executive Director Tarecq Aldaoud made the biggest insider purchase in the last 12 months. That single transaction was for AU$300k worth of shares at a price of AU$0.075 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.14), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While PhosCo insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

PhosCo is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does PhosCo Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that PhosCo insiders own 20% of the company, worth about AU$7.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At PhosCo Tell Us?

It doesn't really mean much that no insider has traded PhosCo shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in PhosCo and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that PhosCo has 5 warning signs (3 are potentially serious!) that deserve your attention before going any further with your analysis.

Of course PhosCo may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here