Aspen Group Gains 13%, Insider Trades Reap Benefit

Last week, Aspen Group (ASX:APZ) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 13% last week, resulting in a AU$56m increase in the company's market worth, implying a 19% gain on their initial purchase. As a result, the stock they originally bought for AU$528.9k is now worth AU$628.8k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Aspen Group

The Last 12 Months Of Insider Transactions At Aspen Group

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Edwina Gilbert for AU$398k worth of shares, at about AU$2.13 per share. We do like to see buying, but this purchase was made at well below the current price of AU$2.40. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Aspen Group insiders may have bought shares in the last year, but they didn't sell any. 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Aspen Group Have Bought Stock Recently

Over the last quarter, Aspen Group insiders have spent a meaningful amount on shares. We can see that Independent Non-Executive Director Edwina Gilbert paid AU$398k for shares in the company. No-one sold. That shows some optimism about the company's future.

Insider Ownership Of Aspen Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Aspen Group insiders own 12% of the company, worth about AU$58m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Aspen Group Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Aspen Group insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aspen Group. For instance, we've identified 5 warning signs for Aspen Group (1 can't be ignored) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.