Insiders of AMG Advanced Metallurgical Group N.V. (AMS:AMG) are probably glad they bought last year as their US$2.3m investment now stands at US$2.9m

Insiders who bought AMG Advanced Metallurgical Group N.V. (AMS:AMG) in the last 12 months may probably not pay attention to the stock's recent 4.8% drop. After taking the recent loss into consideration, the US$2.3m worth of stock they bought is now worth US$2.9m, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for AMG Advanced Metallurgical Group

The Last 12 Months Of Insider Transactions At AMG Advanced Metallurgical Group

The Chairman of the Management Board & CEO Heinz Schimmelbusch made the biggest insider purchase in the last 12 months. That single transaction was for €1.0m worth of shares at a price of €26.28 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of €34.40. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

AMG Advanced Metallurgical Group insiders may have bought shares in the last year, but they didn't sell any. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of AMG Advanced Metallurgical Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. AMG Advanced Metallurgical Group insiders own about €60m worth of shares. That equates to 5.4% 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 Do The AMG Advanced Metallurgical Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Insiders own shares in AMG Advanced Metallurgical Group and we see no evidence to suggest they are worried about the future. 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 4 warning signs for AMG Advanced Metallurgical Group (of which 1 is concerning!) you should know about.

Of course AMG Advanced Metallurgical Group 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.

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.