Apiam Animal Health's Market Cap Up AU$7.3m Following Year Of Insider Stock Buying

Insiders who bought Apiam Animal Health Limited (ASX:AHX) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$7.3m as a result of the stock's 11% gain over the same period. Put another way, the original AU$759.2k acquisition is now worth AU$861.7k.

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 Apiam Animal Health

Apiam Animal Health Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when MD & Executive Director Christopher Richards bought AU$596k worth of shares at a price of AU$0.35 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.40), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Apiam Animal Health insiders were buying shares, but not selling. 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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Apiam Animal Health Insiders Bought Stock Recently

It's good to see that Apiam Animal Health insiders have made notable investments in the company's shares. We can see that MD & Executive Director Christopher Richards paid AU$596k for shares in the company. No-one sold. That shows some optimism about the company's future.

Insider Ownership Of Apiam Animal Health

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Apiam Animal Health insiders own about AU$20m worth of shares. That equates to 27% 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 Apiam Animal Health 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. Insiders likely see value in Apiam Animal Health shares, given these transactions (along with notable insider ownership of the company). 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. Every company has risks, and we've spotted 4 warning signs for Apiam Animal Health (of which 1 makes us a bit uncomfortable!) you should know about.

Of course Apiam Animal Health 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.