Need To Know: Asia Green Biotechnology Corp. (CSE:ASIA) Insiders Have Been Buying Shares

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Asia Green Biotechnology Corp. (CSE:ASIA).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Asia Green Biotechnology

Asia Green Biotechnology Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Johannes Kingma bought CA$136k worth of shares at a price of CA$0.065 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$0.095), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Johannes Kingma purchased 2.49m shares over the year. The average price per share was CA$0.07. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Asia Green Biotechnology Insiders Bought Stock Recently

There was some insider buying at Asia Green Biotechnology over the last quarter. Independent Director Johannes Kingma bought CA$35k worth in that time. On the other hand, Independent Director Johannes Kingma sold CA$160 worth of shares. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Does Asia Green Biotechnology Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Asia Green Biotechnology insiders own 48% of the company, worth about CA$1.7m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Asia Green Biotechnology Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Asia Green Biotechnology insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Asia Green Biotechnology.

But note: Asia Green Biotechnology 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.

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This article by Simply Wall St is general in nature. 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.
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