Bullish Aurizon Holdings Insiders Loaded Up On AU$2.0m Of Stock \

In the last year, multiple insiders have substantially increased their holdings of Aurizon Holdings Limited (ASX:AZJ) stock, indicating that insiders' optimism about the company's prospects has increased.

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 Aurizon Holdings

The Last 12 Months Of Insider Transactions At Aurizon Holdings

In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Andrew Harding bought AU$884k worth of shares at a price of AU$3.85 per share. That means that an insider was happy to buy shares at above the current price of AU$3.56. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Andrew Harding was also the biggest seller.

Happily, we note that in the last year insiders paid AU$2.0m for 549.49k shares. But insiders sold 459.91k shares worth AU$1.7m. Overall, Aurizon Holdings insiders were net buyers during the last year. 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!

Aurizon Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Aurizon Holdings Insiders Bought Stock Recently

Over the last quarter, Aurizon Holdings insiders have spent a meaningful amount on shares. We can see that Independent Chairman Timothy Poole paid AU$228k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Aurizon Holdings insiders own 0.2% of the company, worth about AU$12m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Aurizon Holdings Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Aurizon Holdings 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 Aurizon Holdings. When we did our research, we found 3 warning signs for Aurizon Holdings (1 is concerning!) that we believe deserve your full attention.

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, but not derivative transactions.

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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.