Multiple insiders secured a larger position in Steadfast Group Limited (ASX:SDF) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Steadfast Group

The Last 12 Months Of Insider Transactions At Steadfast Group

Over the last year, we can see that the biggest insider purchase was by Co-Founder Robert Kelly for AU$2.4m worth of shares, at about AU$5.03 per share. That implies that an insider found the current price of AU$5.40 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Steadfast Group insiders decided to buy shares at close to current prices. Notably Robert Kelly was also the biggest seller.

Happily, we note that in the last year insiders paid AU$2.8m for 552.65k shares. But they sold 400.00k shares for AU$2.3m. In the last twelve months there was more buying than selling by Steadfast Group insiders. 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! 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).

Insiders At Steadfast Group Have Bought Stock Recently

It's good to see that Steadfast Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$388k worth of shares. This could be interpreted as suggesting a positive outlook.



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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Steadfast Group insiders own 5.1% of the company, worth about AU$287m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Steadfast Group Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Steadfast Group. Nice! Of course, the future is what matters most. So if you are interested in Steadfast Group, you should check out this freereport on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of interesting companies, that have HIGH return on equity and low debt.

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.

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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.