Looking at Solvar Limited's (ASX:SVR ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Solvar
The Last 12 Months Of Insider Transactions At Solvar
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Stuart Robertson bought AU$99k worth of shares at a price of AU$2.74 per share. That means that an insider was happy to buy shares at above the current price of AU$1.69. 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. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Stuart Robertson was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Solvar
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Solvar insiders own 8.5% of the company, worth about AU$30m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Solvar Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Solvar shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Solvar and their transactions don't cause us concern. 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. To that end, you should learn about the 2 warning signs we've spotted with Solvar (including 1 which can't be ignored).