Non-Executive Director of Advanced Braking Technology Picks Up 3.5% More Stock

Potential Advanced Braking Technology Limited (ASX:ABV) shareholders may wish to note that the Non-Executive Director, David Slack, recently bought AU$218k worth of stock, paying AU$0.082 for each share. Although the purchase only increased their holding by 3.5%, it is still a solid purchase in our view.

View our latest analysis for Advanced Braking Technology

Advanced Braking Technology Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Keith Knowles bought AU$350k worth of shares at a price of AU$0.055 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.084. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 17.96m shares worth AU$966k. But insiders sold 1.65m shares worth AU$90k. In the last twelve months there was more buying than selling by Advanced Braking Technology insiders. 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!

Advanced Braking Technology is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Advanced Braking Technology Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Advanced Braking Technology insiders own about AU$14m worth of shares (which is 44% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Advanced Braking Technology Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Advanced Braking Technology insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Advanced Braking Technology has 2 warning signs (and 1 which is concerning) we think you should know about.

Of course Advanced Braking Technology 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 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.