Non-Executive Chairman of Academies Australasia Group Picks Up 5.3% More Stock

Even if it's not a huge purchase, we think it was good to see that John Schlederer, the Non-Executive Chairman of Academies Australasia Group Limited (ASX:AKG) recently shelled out AU$80k to buy stock, at AU$0.10 per share. However, it only increased their shares held by 5.3%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Academies Australasia Group

The Last 12 Months Of Insider Transactions At Academies Australasia Group

Notably, that recent purchase by John Schlederer is the biggest insider purchase of Academies Australasia Group shares that we've seen in the last year. That implies that an insider found the current price of AU$0.10 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Academies Australasia Group insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.12 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 undervalued small cap companies that insiders are buying.

Does Academies Australasia Group 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. We usually like to see fairly high levels of insider ownership. Academies Australasia Group insiders own 81% of the company, currently worth about AU$11m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Academies Australasia Group Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Academies Australasia Group insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. At Simply Wall St, we found 2 warning signs for Academies Australasia Group that deserve your attention before buying any shares.

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 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.