Trade Alert: Jan Cameron At TasFoods Limited (ASX:TFL), Has Just Spent AU$1.3m Buying 25% More Shares - Simply Wall St - Financial Daily News Site

Trade Alert: Jan Cameron At TasFoods Limited (ASX:TFL), Has Just Spent AU$1.3m Buying 25% More Shares – Simply Wall St

Those following along with TasFoods Limited (ASX:TFL) will no doubt be intrigued by the recent purchase of shares by insider Jan Cameron, who spent a stonking AU$1.3m on stock at an average price of AU$0.07. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 25%.

View our latest analysis for TasFoods

The Last 12 Months Of Insider Transactions At TasFoods

In fact, the recent purchase by Jan Cameron was the biggest purchase of TasFoods shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.064 (the recent price), an insider wanted to purchase shares. 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 always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Jan Cameron was the only individual insider to buy during the last year.

Jan Cameron bought 29.14m shares over the last 12 months at an average price of AU$0.082. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:TFL Insider Trading Volume June 5th 2022

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

Does TasFoods Boast High 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. TasFoods insiders own about AU$6.5m worth of shares. That equates to 23% 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.

So What Do The TasFoods Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest TasFoods insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 4 warning signs for TasFoods you should be aware of, and 1 of them is potentially serious.

Of course TasFoods may not be the best stock to buy. So you may wish to see this free collection 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.

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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