Investors who take an interest in Servcorp Limited (ASX:SRV) should definitely note that the Founder, Alfred Moufarrige, recently paid AU$2.97 per share to buy AU$297k worth of the stock. Although the purchase only increased their holding by 4.6%, it is still a solid purchase in our view.

View our latest analysis for Servcorp

Servcorp Insider Transactions Over The Last Year

In fact, the recent purchase by Founder Alfred Moufarrige was not their only acquisition of Servcorp shares this year. They previously made an even bigger purchase of AU$718k worth of shares at a price of AU$3.59 per share. That means that an insider was happy to buy shares at above the current price of AU$2.92. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Servcorp insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! insider-trading-volume

Servcorp is not the only stock insiders are buying. So take a peek at this freelist of growing companies with insider buying.

Does Servcorp 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. We usually like to see fairly high levels of insider ownership. Based on our data, Servcorp insiders have about 2.4% of the stock, worth approximately AU$6.7m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

So What Do The Servcorp Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Servcorp insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Servcorp. You'd be interested to know, that we found 1 warning sign for Servcorp and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting 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.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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