Whilst it may not be a huge deal, we thought it was good to see that the AMA Group Limited (ASX:AMA) Chairman, Anthony Day, recently bought AU$105k worth of stock, for AU$0.52 per share. While that isn’t the hugest buy, it actually boosted their shareholding by 63%, which is good to see.
The Last 12 Months Of Insider Transactions At AMA Group
Over the last year, we can see that the biggest insider purchase was by Deputy Chairman of the Board Simon Moore for AU$1.5m worth of shares, at about AU$0.93 per share. That means that even when the share price was higher than AU$0.52 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. 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 paid AU$2.9m for 2.99m shares. But they sold 100000 shares for AU$121k. In total, AMA Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
AMA Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of AMA Group
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that AMA Group insiders own 11% of the company, worth about AU$41m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The AMA Group Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in AMA Group shares, given these transactions (along with notable insider ownership of the company). Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for AMA Group.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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