Bullish Associate Global Partners Insiders Rewarded As Their Investment Rises To AU$1.59m

Last week, Associate Global Partners Limited (ASX:APL) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a AU$847k increase in the company's market worth, implying a 61% gain on their initial purchase. As a result, the stock they originally bought for AU$985.3k is now worth AU$1.59m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Associate Global Partners

The Last 12 Months Of Insider Transactions At Associate Global Partners

The Non-Executive Director Brett Cairns made the biggest insider purchase in the last 12 months. That single transaction was for AU$746k worth of shares at a price of AU$0.10 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.17. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Associate Global Partners 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Have Associate Global Partners Insiders Traded Recently?

We've only seen a tiny insider purchase valued at AU$567, in the last three months. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.

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. Associate Global Partners insiders own about AU$3.7m worth of shares. That equates to 40% 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.

What Might The Insider Transactions At Associate Global Partners Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Associate Global Partners and their transactions don't cause us concern. 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. For example, Associate Global Partners has 3 warning signs (and 2 which can't be ignored) we think you should know about.

Of course Associate Global Partners 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.