Insider Buys Additional AU$1.0m In GemLife Communities Group Stock
GemLife Communities Group (ASX:GLF) shareholders (or potential shareholders) will be happy to see that the CEO, MD & Director, Adrian Puljich, recently bought a whopping AU$1.0m worth of stock, at a price of AU$4.01. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.2%.
The Last 12 Months Of Insider Transactions At GemLife Communities Group
In fact, the recent purchase by Adrian Puljich was the biggest purchase of GemLife Communities Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of AU$4.05 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the GemLife Communities Group insiders decided to buy shares at close to current prices. We note that Adrian Puljich was also the biggest seller.
Happily, we note that in the last year insiders paid AU$3.5m for 811.27k shares. On the other hand they divested 451.47k shares, for AU$2.0m. In total, GemLife Communities Group insiders bought more than they sold over the last year. 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!
See our latest analysis for GemLife Communities Group
GemLife Communities 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.
Insider Ownership Of GemLife Communities Group
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that GemLife Communities Group insiders own 27% of the company, worth about AU$411m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The GemLife Communities Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest GemLife Communities Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! 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. At Simply Wall St, we've found that GemLife Communities Group has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
Of course GemLife Communities 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.