Yahoo Finance Pleasing Signs As A Number Of Insiders Buy XPON Technologies Group Stock
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 XPON Technologies Group Limited (ASX:XPN), it sends a favourable message to the company's 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.
View our latest analysis for XPON Technologies Group
XPON Technologies Group Insider Transactions Over The Last Year
In fact, the recent purchase by Jamie Olsen was the biggest purchase of XPON Technologies Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is AU$0.016. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
XPON Technologies Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
XPON Technologies Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
XPON Technologies Group Insiders Bought Stock Recently
It's good to see that XPON Technologies Group insiders have made notable investments in the company's shares. Overall, three insiders shelled out AU$300k for shares in the company -- and none sold. This makes one think the business has some good points.
Does XPON Technologies Group Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. XPON Technologies Group insiders own about AU$2.5m worth of shares (which is 45% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About XPON Technologies Group Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest XPON Technologies Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that XPON Technologies Group is showing 5 warning signs in our investment analysis, and 4 of those make us uncomfortable...
But note: XPON Technologies Group 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 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
