The Independent Non-Executive Director of Australian Clinical Labs Limited (ASX:ACL), Mark Haberlin, Just Bought 90% More Shares

By
Simply Wall St
Published
November 23, 2021
ASX:ACL
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Australian Clinical Labs Limited (ASX:ACL) Independent Non-Executive Director, Mark Haberlin, recently bought AU$99k worth of stock, for AU$4.41 per share. Even though that isn't a massive buy, it did increase their holding by 90%, which is arguably a good sign.

Check out our latest analysis for Australian Clinical Labs

The Last 12 Months Of Insider Transactions At Australian Clinical Labs

Notably, that recent purchase by Mark Haberlin is the biggest insider purchase of Australian Clinical Labs shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$4.25. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Mark Haberlin was the only individual insider to buy during the last year.

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!

insider-trading-volume
ASX:ACL Insider Trading Volume November 23rd 2021

Australian Clinical Labs is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Australian Clinical Labs Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Australian Clinical Labs insiders own about AU$39m worth of shares. That equates to 4.6% 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 Australian Clinical Labs Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Australian Clinical Labs we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Australian Clinical Labs. Be aware that Australian Clinical Labs is showing 2 warning signs in our investment analysis, and 1 of those is concerning...

Of course Australian Clinical Labs 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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