Insider Buying: The Australian Agricultural Projects Ltd (ASX:AAP) Non Executive Director Just Bought 37% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Australian Agricultural Projects Ltd (ASX:AAP) Non Executive Director, Daniel Stefanetti, recently bought AU$122k worth of stock, for AU$0.01 per share. That purchase might not be huge but it did increase their holding by 37%.

See our latest analysis for Australian Agricultural Projects

Australian Agricultural Projects Insider Transactions Over The Last Year

Notably, that recent purchase by Daniel Stefanetti is the biggest insider purchase of Australian Agricultural Projects shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.024. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Australian Agricultural Projects 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. By clicking on the graph below, you can see the precise details of each insider transaction!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Australian Agricultural Projects

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Australian Agricultural Projects insiders own about AU$2.8m worth of shares. That equates to 39% 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 Does This Data Suggest About Australian Agricultural Projects Insiders?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives 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 Australian Agricultural Projects we think they are probably pretty confident of a bright future. 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. Every company has risks, and we've spotted 6 warning signs for Australian Agricultural Projects you should know about.

Of course Australian Agricultural Projects 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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