Insiders See US$477.7k Investment In Afentra Jump Last Week

Last week, Afentra plc (LON:AET) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 11% last week, resulting in a UK£8.6m increase in the company's market worth, implying a 29% gain on their initial purchase. As a result, the stock they originally bought for US$477.7k is now worth US$616.1k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Afentra

Afentra Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the COO & Executive Director, Ian Cloke, for UK£377k worth of shares, at about UK£0.32 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£0.41. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 36% of Ian Cloke's holding. The only individual insider seller over the last year was Ian Cloke. Notably Ian Cloke was also the biggest buyer, having purchased UK£478k worth of shares.

Happily, we note that in the last year insiders paid UK£478k for 1.51m shares. On the other hand they divested 1.26m shares, for UK£397k. In the last twelve months there was more buying than selling by Afentra insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Afentra is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Afentra Have Bought Stock Recently

We saw some Afentra insider buying shares in the last three months. In that period insiders spent UK£433k on shares. On the other hand, COO & Executive Director Ian Cloke sold UK£397k worth of shares. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership Of Afentra

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Afentra insiders own about UK£32m worth of shares. That equates to 36% of the company. 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 Afentra Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Afentra 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 Afentra. For example, Afentra has 3 warning signs (and 1 which is significant) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.