Insider Buyers Lose UK£14k As Artisanal Spirits Sheds UK£3.2m

The recent 11% drop in The Artisanal Spirits Company plc's (LON:ART) stock could come as a blow to insiders who purchased UK£110.9k worth of stock at an average buy price of UK£0.42 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth UK£96.9k which is not ideal.

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 Artisanal Spirits

The Last 12 Months Of Insider Transactions At Artisanal Spirits

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman of the Board Mark Hunter for UK£48k worth of shares, at about UK£0.39 per share. That means that an insider was happy to buy shares at above the current price of UK£0.36. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid UK£111k for 265.61k shares. On the other hand they divested 45.03k shares, for UK£19k. In total, Artisanal Spirits insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Artisanal Spirits is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Artisanal Spirits insiders own about UK£7.4m worth of shares. That equates to 29% 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.

So What Does This Data Suggest About Artisanal Spirits Insiders?

The fact that there have been no Artisanal Spirits insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Artisanal Spirits 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 Artisanal Spirits. For instance, we've identified 3 warning signs for Artisanal Spirits (1 is a bit concerning) you should be aware of.

But note: Artisanal Spirits 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.

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.