Have Insiders Been Buying Amigo Holdings PLC (LON:AMGO) Shares?

We often see insiders buying up shares in companies that perform well over the long term. 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 shareholders might well want to know whether insiders have been buying or selling shares in Amigo Holdings PLC (LON:AMGO).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Amigo Holdings

The Last 12 Months Of Insider Transactions At Amigo Holdings

In the last twelve months, the biggest single purchase by an insider was when insider Glen Crawford bought UK£1.2m worth of shares at a price of UK£0.38 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£0.096). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Happily, we note that in the last year insiders paid UK£1.3m for 3.77m shares. But insiders sold 1.42m shares worth UK£129k. Overall, Amigo Holdings insiders were net buyers during the last year. The average buy price was around UK£0.33. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Amigo 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.

Amigo Holdings Insiders Are Selling The Stock

We've seen more insider selling than insider buying at Amigo Holdings recently. In that time, Chief Analytics Officer Naynesh Patel dumped UK£129k worth of shares. On the flip side, insiders spent UK£57k on purchasing shares. The share price has moved a bit recently, but it's hard to argue that the selling is a positive.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Amigo Holdings insiders own 3.6% of the company, worth about UK£1.7m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Amigo Holdings Tell Us?

The stark truth for Amigo Holdings is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. Still, insiders don't own a great deal of the stock. So the company doesn't look great on this analysis. 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. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Amigo Holdings.

Of course Amigo Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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. 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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