Insiders of Aurizon Holdings Limited (ASX:AZJ) reaped rewards after their AU$3.9m investment jumped another AU$740k

Published
May 18, 2022
ASX:AZJ
Source: Shutterstock

Aurizon Holdings Limited (ASX:AZJ) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 4.9% resulting in a AU$350m addition to the company’s market value. Put another way, the original AU$3.9m acquisition is now worth AU$4.6m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Aurizon Holdings

Aurizon Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Director Andrew Harding bought AU$3.4m worth of shares at a price of AU$3.43 per share. We do like to see buying, but this purchase was made at well below the current price of AU$4.09. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Aurizon Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
ASX:AZJ Insider Trading Volume May 18th 2022

Aurizon Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Aurizon Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of Aurizon Holdings shares, worth about AU$11m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Aurizon Holdings Insiders?

It doesn't really mean much that no insider has traded Aurizon Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Aurizon Holdings and we see no evidence to suggest they are worried about 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. You'd be interested to know, that we found 2 warning signs for Aurizon Holdings and we suggest you have a look.

But note: Aurizon Holdings 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.