Swift Networks Group Slides As Insider Purchases Lose Another AU$72k

Simply Wall St · 10/17 22:28

Insiders who bought AU$245.9k worth of Swift Networks Group Limited's (ASX:SW1) stock at an average buy price of AU$0.017 over the last year may be disappointed by the recent 20% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$174.1k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Swift Networks Group

The Last 12 Months Of Insider Transactions At Swift Networks Group

In the last twelve months, the biggest single purchase by an insider was when insider Joshua Sweetman bought AU$171k worth of shares at a price of AU$0.02 per share. That means that an insider was happy to buy shares at above the current price of AU$0.012. 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 insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Swift Networks Group insiders bought shares during the last year, they didn't sell. Their average price was about AU$0.017. These transactions suggest that insiders have considered the current price attractive. 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!

insider-trading-volume
ASX:SW1 Insider Trading Volume October 17th 2024

Swift Networks Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Swift Networks Group Have Bought Stock Recently

Over the last quarter, Swift Networks Group insiders have spent a meaningful amount on shares. Specifically, insider Joshua Sweetman bought AU$171k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Swift Networks Group insiders own about AU$3.3m worth of shares. That equates to 37% 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.

What Might The Insider Transactions At Swift Networks Group Tell Us?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Swift Networks Group we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 3 warning signs we've spotted with Swift Networks Group (including 2 which are significant).

Of course Swift Networks Group 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.