Insiders who bought stock earlier this year lose -AU$31k as AMA Group Limited (ASX:AMA) drops to AU$172m

The recent price decline of 36% in AMA Group Limited's (ASX:AMA) stock may have disappointed insiders who bought AU$199k worth of shares at an average price of AU$0.19 in the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$168k, which is not great.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for AMA Group

The Last 12 Months Of Insider Transactions At AMA Group

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

AMA Group insiders may have bought shares in the last year, but they didn't sell any. 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!

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

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. Insiders own 4.9% of AMA Group shares, worth about AU$8.5m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About AMA Group Insiders?

It doesn't really mean much that no insider has traded AMA Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think AMA Group insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AMA Group. To that end, you should learn about the 3 warning signs we've spotted with AMA Group (including 1 which shouldn't be ignored).

But note: AMA 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, but not derivative transactions.

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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.