When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in RPM Automotive Group Limited’s (ASX:RPM) instance, it’s good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to completely ignore insider transactions.
See our latest analysis for RPM Automotive Group
RPM Automotive Group Insider Transactions Over The Last Year
There wasn’t any very large single transaction over the last year, but we can still observe some trading.
In the last twelve months insiders purchased 313.85k shares for AU$88k. On the other hand they divested 102.54k shares, for AU$32k. In the last twelve months there was more buying than selling by RPM Automotive Group insiders. 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!
RPM Automotive Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of RPM Automotive Group
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 7.6% of RPM Automotive Group shares, worth about AU$2.3m, according to our data. But they may have an indirect interest through a corporate structure that we haven’t picked up on. While better than nothing, we’re not overly impressed by these holdings.
So What Do The RPM Automotive Group Insider Transactions Indicate?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if RPM Automotive Group insiders bought more shares in the company. 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. Case in point: We’ve spotted 4 warning signs for RPM Automotive Group you should be aware of, and 1 of these is a bit unpleasant.
If you would prefer to check out another company — one with potentially superior financials — then don’t miss this free list of interesting companies, that have HIGH returns on equity 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, but not derivative transactions.
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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.
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