Insiders Enjoy AU$782k Return After Buying Axiom Properties Stock

Insiders who bought Axiom Properties Limited (ASX:AXI) in the last 12 months may probably not pay attention to the stock's recent 14% drop. Even after accounting for the recent loss, the AU$2.09m worth of stock purchased by them is now worth AU$2.87m or in other words, their investment continues to give good returns.

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.

Check out our latest analysis for Axiom Properties

Axiom Properties Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Sean Baguley bought AU$1.6m worth of shares at a price of AU$0.04 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.055. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 52.15m shares worth AU$2.1m. But they sold 5.00m shares for AU$250k. In total, Axiom Properties insiders bought more than they sold over 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Axiom Properties Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Axiom Properties insiders own 37% of the company, worth about AU$8.8m. 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 Does This Data Suggest About Axiom Properties Insiders?

It doesn't really mean much that no insider has traded Axiom Properties shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Axiom Properties and we see no evidence to suggest they are worried about the future. While it's good to be aware of 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. Be aware that Axiom Properties is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

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.