Insider Buying: The Ardent Leisure Group Limited (ASX:ALG) Non-Executive Chairman Just Bought 2.1% More Shares

Potential Ardent Leisure Group Limited (ASX:ALG) shareholders may wish to note that the Non-Executive Chairman, Gary Weiss, recently bought AU$315k worth of stock, paying AU$0.63 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.1%.

View our latest analysis for Ardent Leisure Group

Ardent Leisure Group Insider Transactions Over The Last Year

Notably, that recent purchase by Gary Weiss is the biggest insider purchase of Ardent Leisure Group shares that we've seen in the last year. That means that even when the share price was higher than AU$0.60 (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 encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Gary Weiss.

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!

Ardent Leisure Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Ardent Leisure Group insiders own about AU$16m worth of shares. That equates to 5.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Ardent Leisure Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Ardent Leisure Group we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Ardent Leisure Group you should be aware of.

Of course Ardent Leisure 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, but not derivative transactions.

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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. 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.
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