Advertisement

Insider Buying: The Earlypay Limited (ASX:EPY) COO, CEO & Executive Director Just Bought 1.9% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Earlypay Limited (ASX:EPY) COO, CEO & Executive Director, James Beeson, recently bought AU$111k worth of stock, for AU$0.37 per share. However, it only increased their shares held by 1.9%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Earlypay

Earlypay Insider Transactions Over The Last Year

Notably, that recent purchase by James Beeson is the biggest insider purchase of Earlypay shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.41. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Earlypay share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 412.57k shares for AU$161k. On the other hand they divested 2.25k shares, for AU$831. In the last twelve months there was more buying than selling by Earlypay insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Earlypay is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Earlypay insiders own 15% of the company, worth about AU$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Earlypay Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Earlypay insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 4 warning signs for Earlypay (of which 1 makes us a bit uncomfortable!) you should know about.

But note: Earlypay 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.

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