Bullish insiders bet AU$3.6m on Airtasker Limited (ASX:ART)

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

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Airtasker

The Last 12 Months Of Insider Transactions At Airtasker

In fact, the recent purchase by Xiaofan Bai was the biggest purchase of Airtasker shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$0.41. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid AU$3.6m for 8.26m shares. On the other hand they divested 251.29k shares, for AU$239k. In the last twelve months there was more buying than selling by Airtasker insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume

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

Insiders At Airtasker Have Bought Stock Recently

Over the last three months, we’ve seen significant insider buying at Airtasker. Not only was there no selling that we can see, but they collectively bought AU$3.6m worth of shares. That shows some optimism about the company’s future.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Airtasker insiders own 41% of the company, currently worth about AU$76m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Airtasker Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Airtasker. Looks promising! In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Airtasker. For example – Airtasker has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list 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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Add a Comment

Your email address will not be published. Required fields are marked *