Simon Owen Bought 30% More Shares In Eureka Group Holdings
Investors who take an interest in Eureka Group Holdings Limited (ASX:EGH) should definitely note that the MD, CEO & Director, Simon Owen, recently paid AU$0.61 per share to buy AU$700k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 30%.
Eureka Group Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by MD, CEO & Director Simon Owen was not their only acquisition of Eureka Group Holdings shares this year. They previously made an even bigger purchase of AU$700k worth of shares at a price of AU$0.61 per share. That implies that an insider found the current price of AU$0.63 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Eureka Group Holdings insiders decided to buy shares at close to current prices.
While Eureka Group Holdings 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. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Eureka Group Holdings
Eureka Group Holdings 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.
Does Eureka Group Holdings Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Eureka Group Holdings insiders own 3.1% of the company, worth about AU$11m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Eureka Group Holdings Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Eureka Group Holdings shares, given these transactions (along with notable insider ownership of 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. To help with this, we've discovered 4 warning signs (2 don't sit too well with us!) that you ought to be aware of before buying any shares in Eureka Group Holdings.
Of course Eureka Group Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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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.