A number of insiders bought SILK Laser Australia Limited (ASX:SLA) stock last year, which is great news for shareholders
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of SILK Laser Australia Limited (ASX:SLA), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for SILK Laser Australia
SILK Laser Australia Insider Transactions Over The Last Year
While no particular insider transaction stood out, we can still look at the overall trading.
While SILK Laser Australia insiders bought shares during the last year, they didn't sell. Their average price was about AU$3.18. These transactions suggest that insiders have considered the current price of AU$1.76 attractive. 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!
SILK Laser Australia 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 Of SILK Laser Australia
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that SILK Laser Australia insiders own about AU$12m worth of shares (which is 12% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The SILK Laser Australia Insider Transactions Indicate?
It doesn't really mean much that no insider has traded SILK Laser Australia shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in SILK Laser Australia and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SILK Laser Australia. For example - SILK Laser Australia has 1 warning sign we think you should be aware of.
But note: SILK Laser Australia 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.
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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.
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