Insider Buyers At Janison Education Group Recover Some Losses, But Still Down AU$28k

Some of the losses seen by insiders who purchased AU$277.5k worth of Janison Education Group Limited (ASX:JAN) shares over the past year were recovered after the stock increased by 22% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled AU$28k since the time of purchase.

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.

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Janison Education Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Peter Constable for AU$82k worth of shares, at about AU$0.12 per share. That means that an insider was happy to buy shares at above the current price of AU$0.11. 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. In our view, the price an insider pays for shares is very important. 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.

While Janison Education Group insiders bought shares during the last year, they didn’t sell. 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!

See our latest analysis for Janison Education Group

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Janison Education Group Have Bought Stock Recently

Over the last three months, we’ve seen significant insider buying at Janison Education Group. Not only was there no selling that we can see, but they collectively bought AU$115k worth of shares. That shows some optimism about the company’s future.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Janison Education Group insiders own about AU$9.1m worth of shares. That equates to 32% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Janison Education Group Tell Us?

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. Insiders likely see value in Janison Education Group shares, given these transactions (along with notable insider ownership of the company). 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. For instance, we’ve identified 2 warning signs for Janison Education Group (1 is concerning) you should be aware of.

But note: Janison Education Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.