Insiders Give Up AU$174k As Articore Group Stock Drops To AU$0.23

Insiders who acquired AU$748.4k worth of Articore Group Limited's (ASX:ATG) stock at an average price of AU$0.31 in the past 12 months may be dismayed by the recent 13% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$574.0k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Articore Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Martin Hosking bought AU$305k worth of shares at a price of AU$0.35 per share. That means that an insider was happy to buy shares at above the current price of AU$0.23. 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. In our view, the price an insider pays 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.

Happily, we note that in the last year insiders paid AU$748k for 2.44m shares. On the other hand they divested 165.62k shares, for AU$27k. In total, Articore Group insiders bought more than they sold over the last year. Their average price was about AU$0.31. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Articore Group

Articore Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Articore Group Insiders Bought Stock Recently

It's good to see that Articore Group insiders have made notable investments in the company's shares. Overall, three insiders shelled out AU$262k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of Articore Group

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Articore Group insiders own about AU$19m worth of shares. That equates to 28% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Articore Group Tell Us?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Articore Group shares, given these transactions (along with notable insider ownership of 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. You'd be interested to know, that we found 1 warning sign for Articore Group and we suggest you have a look.

Of course Articore Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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.