Even if it's not a huge purchase, we think it was good to see that Michael McConnell, the Non-Executive Chairman of Adacel Technologies Limited (ASX:ADA) recently shelled out AU$87k to buy stock, at AU$0.38 per share. Even though that isn't a massive buy, it did increase their holding by 57%, which is a arguably a good sign.
Adacel Technologies Insider Transactions Over The Last Year
Notably, that recent purchase by Michael McConnell is the biggest insider purchase of Adacel Technologies shares that we've seen in the last year. That means that even when the share price was higher than AU$0.37 (the recent price), an insider wanted to purchase shares. 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 an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Michael McConnell was the only individual insider to buy over the year.
Michael McConnell purchased 342.16k shares over the year. The average price per share was AU$0.41. The chart below shows insider transactions (by individuals) over the last year. 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.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Adacel Technologies insiders own 14% of the company, worth about AU$3.9m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Adacel Technologies Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Adacel Technologies insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Adacel Technologies. For instance, we've identified 4 warning signs for Adacel Technologies (1 is concerning) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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