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The recent 24% drop in Synertec Corporation Limited's (ASX:SOP) stock could come as a blow to insiders who purchased AU$257.1k worth of stock at an average buy price of AU$0.07 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$80.7k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Synertec
The Chairman Johannes Risseeuw made the biggest insider purchase in the last 12 months. That single transaction was for AU$127k worth of shares at a price of AU$0.072 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.022). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Synertec insiders were buying shares, but not selling. 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!
Check out our latest analysis for Synertec
Synertec is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Synertec Boast High Insider Ownership?
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. Insiders own 10% of Synertec shares, worth about AU$1.2m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!