Even if it's not a huge purchase, we think it was good to see that Wayne Massey, the Executive Director of Australian Rural Capital Limited (ASX:ARC) recently shelled out AU$55k to buy stock, at AU$0.21 per share. Even though that isn't a massive buy, it did increase their holding by 100%, which is arguably a good sign.
The Last 12 Months Of Insider Transactions At Australian Rural Capital
Over the last year, we can see that the biggest insider sale was by the insider, Andrew Brown, for AU$360k worth of shares, at about AU$0.42 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$0.25. So it is hard to draw any strong conclusion from it. Notably Andrew Brown was also the biggest buyer, having purchased AU$307k worth of shares.
Happily, we note that in the last year insiders paid AU$307k for 965.87k shares. But insiders sold 1.36m shares worth AU$509k. All up, insiders sold more shares in Australian Rural Capital than they bought, over the last year. The sellers received a price of around AU$0.37, on average. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of AU$0.25. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Australian Rural Capital better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Australian Rural Capital Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Australian Rural Capital insiders own 21% of the company, worth about AU$1.5m. 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 Do The Australian Rural Capital Insider Transactions Indicate?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Australian Rural Capital insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. While we like knowing 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. For example - Australian Rural Capital has 4 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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