Interesting read.Even if it's not a huge purchase, we think it...

Interesting read.

Even if it's not a huge purchase, we think it was good to see that Lindsay Hannan, a Ovato Limited (ASX:OVT) insider, recently shelled out AU$132k to buy stock, at AU$0.011 per share. However, we do note that it only increased their holding by 6.4%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Ovato

Ovato Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chief Operating Officer James Hannan for AU$1.6m worth of shares, at about AU$0.051 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.012). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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.

Over the last year, we can see that insiders have bought 68.88m shares worth AU$3.0m. But insiders sold 31653644 shares worth AU$1.6m. Overall, Ovato insiders were net buyers last year. Their average price was about AU$0.043. I'd consider this a positive as it suggests insiders see value at around the current price.