Stock Analysis

Abacus Property Group (ASX:ABP) may have lost AU$108m in value but insiders who invested last year have seen gains of around AU$21k to date

Insiders who purchased Abacus Property Group (ASX:ABP) shares in the past 12 months are unlikely to be deeply impacted by the stock's 3.4% decline over the past week. Reason being, despite the recent loss, insiders original purchase value of AU$409k is now worth AU$430k.

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.

Check out our latest analysis for Abacus Property Group

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Abacus Property Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by MD & Director Steven Sewell for AU$409k worth of shares, at about AU$3.56 per share. That implies that an insider found the current price of AU$3.75 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 bought shares at close to current prices. The only individual insider to buy over the last year was Steven Sewell.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
ASX:ABP Insider Trading Volume January 10th 2022

Abacus Property Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Abacus Property Group

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Abacus Property Group insiders own 0.1% of the company, worth about AU$4.0m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

What Might The Insider Transactions At Abacus Property Group Tell Us?

The fact that there have been no Abacus Property Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Abacus Property Group insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Abacus Property Group (1 is significant!) and we strongly recommend you look at these before investing.

But note: Abacus Property Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.

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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

About ASX:ABG

Abacus Group

A strong asset backed, annuity style business model where capital is directed towards assets that provide potential for enhanced income growth and ultimately create value.

Second-rate dividend payer with low risk.

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