Trade Alert: The MD & Director Of Abacus Property Group (ASX:ABP), Steven Sewell, Has Just Spent AU$90k Buying 7.7% More Shares

By
Simply Wall St
Published
March 25, 2022
ASX:ABP
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Steven Sewell, the MD & Director of Abacus Property Group (ASX:ABP) recently shelled out AU$90k to buy stock, at AU$3.35 per share. However, it only increased their shares held by 7.7%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Abacus Property Group

Abacus Property Group Insider Transactions Over The Last Year

In fact, the recent purchase by MD & Director Steven Sewell was not their only acquisition of Abacus Property Group shares this year. Earlier in the year, they paid AU$3.56 per share in a AU$409k purchase. That means that an insider was happy to buy shares at above the current price of AU$3.35. 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. We always take careful note of the price insiders pay when purchasing 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. Steven Sewell was the only individual insider to buy during the last year.

Steven Sewell purchased 141.58k shares over the year. The average price per share was AU$3.52. 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!

insider-trading-volume
ASX:ABP Insider Trading Volume March 25th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Abacus Property Group 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. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own AU$3.6m worth of Abacus Property Group stock, about 0.1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

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

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives 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 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 5 warning signs for Abacus Property Group (2 make us uncomfortable!) and we strongly recommend you look at them before investing.

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, but not derivative transactions.

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