Insiders who bought Peako Limited (ASX:PKO) in the last 12 months may probably not pay attention to the stock's recent 10.0% drop. After taking the recent loss into consideration, the AU$254.9k worth of stock they bought is now worth AU$573.8k, indicating that their investment yielded a positive return.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Peako
The Non-Executive Chairman of the Board Gernot Abl made the biggest insider purchase in the last 12 months. That single transaction was for AU$150k worth of shares at a price of AU$0.004 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.009. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Peako insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Peako
Peako 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.
Peako Insiders Bought Stock Recently
Over the last quarter, Peako insiders have spent a meaningful amount on shares. Overall, three insiders shelled out AU$255k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Peako Boast High Insider Ownership?
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. Peako insiders own about AU$5.1m worth of shares. That equates to 20% 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.
So What Does This Data Suggest About Peako Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Peako we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Peako. Case in point: We've spotted 5 warning signs for Peako you should be aware of, and 4 of them are significant.
But note: Peako may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.