It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in RPMGlobal Holdings Limited's (ASX:RUL) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for RPMGlobal Holdings

The Last 12 Months Of Insider Transactions At RPMGlobal Holdings

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

In the last twelve months RPMGlobal Holdings insiders were buying shares, but not selling. The average buy price was around AU$1.48. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels, which is around AU$2.14. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this freelist of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 10% of RPMGlobal Holdings shares, worth about AU$52m. 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 RPMGlobal Holdings Tell Us?



There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders own shares in RPMGlobal Holdings and we see no evidence to suggest they are worried about the future. Along with insider transactions, I recommend checking if RPMGlobal Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.

Of course RPMGlobal Holdings may not be the best stock to buy. So you may wish to see this freecollection 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.

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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.