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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Identitii Limited (ASX:ID8), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
View our latest analysis for Identitii
The Last 12 Months Of Insider Transactions At Identitii
In fact, the recent purchase by Kenneth Baker was the biggest purchase of Identitii shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.20. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 2.71m shares for AU$293k. But they sold 1.50m shares for AU$138k. In total, Identitii insiders bought more than they sold over the last year. Their average price was about AU$0.11. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Identitii Insiders Bought Stock Recently
At Identitii,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, two insiders bought AU$259k worth of shares. But we did see insider Martin Rogers sell shares worth AU$138k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.