Investors who take an interest in Archer-Daniels-Midland Company (NYSE:ADM) should definitely note that the Chairman, Juan Luciano, recently paid US$36.65 per share to buy US$200k worth of the stock. While that’s a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 0.6%.
See our latest analysis for Archer-Daniels-Midland
The Last 12 Months Of Insider Transactions At Archer-Daniels-Midland
Over the last year, we can see that the biggest insider purchase was by Lead Independent Director Donald Felsinger for US$2.5m worth of shares, at about US$41.80 per share. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$38.36). 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. 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 bought 101k shares for a total of US$4.2m. In the last twelve months Archer-Daniels-Midland insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does Archer-Daniels-Midland Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.4% of Archer-Daniels-Midland shares, worth about US$92m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Archer-Daniels-Midland Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Archer-Daniels-Midland we think they are probably pretty confident of a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Archer-Daniels-Midland.
But note: Archer-Daniels-Midland 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.