How Many Alpha Financial Markets Consulting plc (LON:AFM) Shares Have Insiders Sold, In The Last Year?

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Alpha Financial Markets Consulting plc (LON:AFM).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

See our latest analysis for Alpha Financial Markets Consulting

Alpha Financial Markets Consulting Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Global CEO & Director, Euan N. Fraser, for UK£2.1m worth of shares, at about UK£2.30 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£2.70. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 62% of Euan N. Fraser's stake. Euan N. Fraser was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Alpha Financial Markets Consulting Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Alpha Financial Markets Consulting insiders own 0.8% of the company, worth about UK£1.9m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Alpha Financial Markets Consulting Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Alpha Financial Markets Consulting insiders. And usually insiders own more stock in the company, according to our data. 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. Every company has risks, and we've spotted 3 warning signs for Alpha Financial Markets Consulting you should know about.

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, but not derivative transactions.

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