Insiders of Associate Global Partners Getting Good Value On Their AU$1.45m Investment

Associate Global Partners Limited (ASX:APL) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 29% resulting in a AU$1.7m addition to the company’s market value. As a result, the stock they originally bought for AU$1.45m is now worth AU$1.62m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Associate Global Partners

Associate Global Partners Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Brett Cairns for AU$746k worth of shares, at about AU$0.10 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.14), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Associate Global Partners insiders were buying shares, but not selling. Their average price was about AU$0.12. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Associate Global Partners is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Associate Global Partners Insiders Bought Stock Recently

Over the last quarter, Associate Global Partners insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$985k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Many investors like to check how much of a company is owned by 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$2.2m worth of shares. That equates to 29% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Associate Global Partners Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Associate Global Partners we think they are probably pretty confident of a bright future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Associate Global Partners has 5 warning signs (3 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com