The recent 11% drop in Academies Australasia Group Limited's (ASX:AKG) stock could come as a blow to insiders who purchased AU$579k worth of stock at an average buy price of AU$0.27 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$524k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Academies Australasia Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Group MD Christopher Campbell for AU$114k worth of shares, at about AU$0.28 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.24). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
Academies Australasia Group insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insiders at Academies Australasia Group Have Bought Stock Recently
It's good to see that Academies Australasia Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$172k worth of shares. This is a positive in our book as it implies some confidence.
Does Academies Australasia Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Academies Australasia Group insiders own about AU$27m worth of shares (which is 85% 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 Academies Australasia Group Insider Transactions Indicate?
The recent insider purchases are 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Academies Australasia Group. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Academies Australasia Group. For instance, we've identified 2 warning signs for Academies Australasia Group (1 is a bit unpleasant) you should be aware of.
But note: Academies Australasia 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.