Several Insiders Invested In Academies Australasia Group Flagging Positive News

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Academies Australasia Group Limited (ASX:AKG), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Academies Australasia Group

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman John Schlederer bought AU$80k worth of shares at a price of AU$0.10 per share. That means that an insider was happy to buy shares at around the current price of AU$0.10. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Academies Australasia Group share holders is that insiders were buying at near the current price.

While Academies Australasia Group insiders bought shares during the last year, they didn't sell. The average buy price was around AU$0.11. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Academies Australasia Group

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Academies Australasia Group Insiders Bought Stock Recently

It's good to see that Academies Australasia Group insiders have made notable investments in the company's shares. Overall, two insiders shelled out AU$162k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Does Academies Australasia Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Academies Australasia Group insiders own 83% of the company, currently worth about AU$12m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of 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. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 3 warning signs for Academies Australasia Group and we suggest you have a look.

Of course Academies Australasia Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.