Insider Stock Buyers At Argentex Group Recouped Some Losses This Week

Insiders who purchased UK£118.0k worth of Argentex Group PLC (LON:AGFX) shares over the past year recouped some of their losses after price gained 12% last week. However, total losses seen by insiders are still UK£55k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Argentex Group

The Last 12 Months Of Insider Transactions At Argentex Group

Over the last year, we can see that the biggest insider purchase was by CEO & Director James Ormonde for UK£50k worth of shares, at about UK£0.77 per share. That means that an insider was happy to buy shares at above the current price of UK£0.36. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

In the last twelve months Argentex Group insiders were buying shares, but not selling. Their average price was about UK£0.67. These transactions suggest that insiders have considered the current price attractive. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Argentex Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Argentex Group insiders own 21% of the company, worth about UK£9.1m. 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 Argentex Group Tell Us?

It doesn't really mean much that no insider has traded Argentex Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Argentex Group insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Argentex Group. Case in point: We've spotted 5 warning signs for Argentex Group you should be aware of, and 2 of these are concerning.

But note: Argentex Group 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 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.