Stock was bought by insiders in large numbers last yea

It is often uneventful when one insider purchases stock. But, it can happen when several insiders buy shares. The Reject Shop Limited (ASX:TRSIt’s wonderful news for shareholders.

Although insider transactions may not be the most important aspect of long-term investing for us, it would be foolish to overlook them altogether.

See our latest analysis for Reject Shop

Reject Shop’s 12 Months of Insider Transactions

We can see that Steven Fisher, Independent Non-Executive Chairman, purchased the largest amount of insider shares at AU$4.45 each share. This was AU$156k. So, it is clear that insiders wanted to purchase shares at a price higher than the current share price of AU$4.13. Although it is possible for them to regret the purchase they may be bullish on the company. We believe that the price an insider pays to purchase shares is important. It is usually more encouraging for an insider to pay more than the current price. This indicates they are seeing value at higher levels.

Reject Shop insiders purchased shares in the past year but didn’t sell. On average, they paid AU$3.98. It is great to see insiders investing their cash in the stock of the company, even though it is below the current share price. Below is a chart that shows the insider transactions made by individuals and companies over the last year. You can click on the chart to view all transactions, including share price, individual transaction and date.

Reject Shop isn’t the only stock market insider buying. Take a look at this. No cost list of growing companies with insider buying.

Insider Ownership Of Reject Shop

The total shareholdings of insiders can be used to help you assess whether they are aligned with shareholders. High insider ownership can make company leaders more attentive to shareholder interests. Reject Shop insiders hold shares worth about AU$10m (which is 6.7%) according to our data. However, we do recognize that insiders may have indirect interests through private companies or other corporate structures. While these holdings are better than nothing, they don’t impress us.

So, what do these data suggest about reject shop insiders?

It doesn’t mean that Reject Shop shares have not been traded by insiders in the past quarter. Our analysis of transactions over this year is positive. Reject Shop does have insiders, but their transactions aren’t alarming. However, It is the future that matters most. You should also check this website if Reject Shop interests you. No cost report on analyst forecasts for the company.

Take note! Reject Shop may not make the best stock to invest in. Take a look at this. No cost list of interesting companies with high ROE and low debt.

Insiders, for the purposes of this article are individuals who report transactions to the relevant regulatory agency. We currently account only for transactions in open markets and private dispositions.

Let us know what you think about this article. Are you concerned about the content? Get in touch Contact us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St has a general nature. Our commentary is based on historical data, analyst forecasts and other unbiased information. We do not intend to provide financial advice. It is not a recommendation not to buy or sell any stocks and does not take into account your objectives or financial situation. Our aim is to give you long-term, fundamentally driven analysis. Our analysis may not take into account the most recent price-sensitive company announcements and qualitative material. Simply Wall St holds no position in any of the stocks mentioned.

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