The Group CEO & Executive Director of AMA Group Limited (ASX:AMA), Andrew Hopkins, Just Bought 7.9% More Shares

AMA Group Limited (ASX:AMA) shareholders (or potential shareholders) will be happy to see that the Group CEO & Executive Director, Andrew Hopkins, recently bought a whopping AU$2.3m worth of stock, at a price of AU$0.78. While that only increased their holding size by 7.9%, it is still a big swing by our standards.

Check out our latest analysis for AMA Group

The Last 12 Months Of Insider Transactions At AMA Group

Notably, that recent purchase by Andrew Hopkins is the biggest insider purchase of AMA Group shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$0.75. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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 9.61m shares worth AU$6.4m. But insiders sold 100.00k shares worth AU$121k. In the last twelve months there was more buying than selling by AMA Group insiders. The average buy price was around AU$0.67. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of AMA Group

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. AMA Group insiders own about AU$58m worth of shares. That equates to 11% of the company. 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 AMA Group Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest AMA Group insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that AMA Group is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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