Insider Buyers Lose Additional AU$319k As Alliance Aviation Services Dips To AU$233m

Insiders who bought AU$752.0k worth of Alliance Aviation Services Limited's (ASX:AQZ) stock at an average buy price of AU$2.52 over the last year may be disappointed by the recent 43% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth AU$432.5k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Alliance Aviation Services Insider Transactions Over The Last Year

The MD & Executive Director Scott McMillan made the biggest insider purchase in the last 12 months. That single transaction was for AU$182k worth of shares at a price of AU$2.59 each. That means that an insider was happy to buy shares at above the current price of AU$1.45. 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. 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.

While Alliance Aviation Services insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Alliance Aviation Services

Alliance Aviation Services is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Alliance Aviation Services Have Bought Stock Recently

Over the last quarter, Alliance Aviation Services insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$106k worth of shares. That shows some optimism about the company's future.

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. It appears that Alliance Aviation Services insiders own 7.2% of the company, worth about AU$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Alliance Aviation Services Tell Us?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Alliance Aviation Services shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alliance Aviation Services. For example - Alliance Aviation Services has 1 warning sign we think you should be aware of.

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 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.