CEO, MD & Director of Althea Group Holdings Joshua Fegan Buys 6.9% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Althea Group Holdings Limited (ASX:AGH) CEO, MD & Director, Joshua Fegan, recently bought AU$80k worth of stock, for AU$0.02 per share. However, it only increased their shares held by 6.9%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Althea Group Holdings

Notably, that recent purchase by Joshua Fegan is the biggest insider purchase of Althea Group Holdings shares that we've seen in the last year. That implies that an insider found the current price of AU$0.022 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid AU$124k for 5.00m shares. But they sold 113.72k shares for AU$2.7k. In the last twelve months there was more buying than selling by Althea Group Holdings insiders. Their average price was about AU$0.025. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Althea Group Holdings

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

Does Althea Group Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 16% of Althea Group Holdings shares, worth about AU$1.8m. 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 Althea Group Holdings 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. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Althea Group Holdings insiders are well aligned, and that they may think the share price is too low. 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. Be aware that Althea Group Holdings is showing 4 warning signs in our investment analysis, and 3 of those are potentially serious...

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.