Yahoo Finance One Rectifier Technologies Limited (ASX:RFT) insider upped their stake by 473% in the previous year
Viewing insider transactions for Rectifier Technologies Limited's (ASX:RFT ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Rectifier Technologies
Rectifier Technologies Insider Transactions Over The Last Year
The insider Malcolm Duncan made the biggest insider purchase in the last 12 months. That single transaction was for AU$3.3m worth of shares at a price of AU$0.033 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.055. 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.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Rectifier Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Rectifier Technologies Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Rectifier Technologies insiders own 49% of the company, worth about AU$37m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Rectifier Technologies Insiders?
It doesn't really mean much that no insider has traded Rectifier Technologies shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Rectifier Technologies insiders feel good about the company's future. 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. You'd be interested to know, that we found 4 warning signs for Rectifier Technologies and we suggest you have a look.
Of course Rectifier Technologies 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, but not derivative transactions.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
