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Investors who take an interest in Smartgroup Corporation Ltd (ASX:SIQ) should definitely note that the Independent Non-Executive Chairman, John Prendiville, recently paid AU$6.95 per share to buy AU$174k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 21%.
Smartgroup Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Non-Executive Chairman John Prendiville was not the only time they bought Smartgroup shares this year. Earlier in the year, they paid AU$8.34 per share in a AU$584k purchase. That means that an insider was happy to buy shares at above the current price of AU$7.09. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Smartgroup insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Smartgroup
Smartgroup is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Smartgroup
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. Smartgroup insiders own about AU$38m worth of shares. That equates to 4.2% of the company. 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 Smartgroup Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Smartgroup we think they are probably pretty confident of a bright future. 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. For example - Smartgroup has 1 warning sign we think you should be aware of.