Have Insiders Been Buying Aims Property Securities Fund (ASX:APW) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Aims Property Securities Fund (ASX:APW), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Aims Property Securities Fund

Aims Property Securities Fund Insider Transactions Over The Last Year

In fact, the recent purchase by Li Li was the biggest purchase of Aims Property Securities Fund shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$1.35. 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. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 4.40m shares for AU$7.8m. But insiders sold 20.50k shares worth AU$34k. In total, Aims Property Securities Fund insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Aims Property Securities Fund Insiders Bought Stock Recently

At Aims Property Securities Fund,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, two insiders bought AU$7.8m worth of shares in that time. But insiders only sold shares worth AU$34k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Does Aims Property Securities Fund 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Aims Property Securities Fund insiders own about AU$6.5m worth of shares (which is 11% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Aims Property Securities Fund Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Aims Property Securities Fund insiders are reasonably well aligned, and optimistic for the future. While we like knowing 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. When we did our research, we found 3 warning signs for Aims Property Securities Fund (2 make us uncomfortable!) that we believe deserve your full attention.

But note: Aims Property Securities Fund 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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This article by Simply Wall St is general in nature. 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.
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