Stock Analysis

Insider Buying: The Abacus Property Group (ASX:ABP) Chairman Just Bought 21% More Shares

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ASX:ABP
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Even if it's not a huge purchase, we think it was good to see that Myra Salkinder, the Chairman of Abacus Property Group (ASX:ABP) recently shelled out AU$99k to buy stock, at AU$2.90 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 21%.

See our latest analysis for Abacus Property Group

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$129k worth of shares, at about AU$2.80 per share. That implies that an insider found the current price of AU$2.87 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Abacus Property Group insiders decided to buy shares at close to current prices.

While Abacus Property Group insiders bought shares during the last year, they didn't sell. Their average price was about AU$3.10. This is nice to see since it implies that insiders might see value around current prices. 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!

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ASX:ABP Insider Trading Volume January 5th 2021

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.

Does Abacus Property Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Abacus Property Group insiders own 0.1% of the company, worth about AU$2.3m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Abacus Property Group Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Abacus Property Group insiders are reasonably well aligned, and optimistic for the future. 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. In terms of investment risks, we've identified 4 warning signs with Abacus Property Group and understanding these should be part of your investment process.

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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