Axiom Properties Insiders Are Down AU$133k But Regain Some Losses

Insiders who purchased AU$309.1k worth of Axiom Properties Limited (ASX:AXI) shares over the past year recouped some of their losses after price gained 31% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled AU$133k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Axiom Properties

In the last twelve months, the biggest single purchase by an insider was when MD & Executive Director Benjamin Laurance bought AU$197k worth of shares at a price of AU$0.031 per share. That means that an insider was happy to buy shares at above the current price of AU$0.021. 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. To us, it's very important to consider the price insiders pay for shares. 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. Benjamin Laurance was the only individual insider to buy shares in the last twelve months. We note that Benjamin Laurance was both the biggest buyer and the biggest seller.

Benjamin Laurance bought a total of 8.40m shares over the year at an average price of AU$0.037. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Axiom Properties

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

Insider Ownership Of Axiom Properties

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 40% of Axiom Properties shares, worth about AU$3.6m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Axiom Properties Tell Us?

It doesn't really mean much that no insider has traded Axiom Properties shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Axiom Properties and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Axiom Properties (including 3 which don't sit too well with us).

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.