Have Insiders Been Buying Arlington Asset Investment Corp. (NYSE:AAIC) Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Arlington Asset Investment Corp. (NYSE:AAIC).

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 would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Arlington Asset Investment

The Last 12 Months Of Insider Transactions At Arlington Asset Investment

The President J. Tonkel made the biggest insider purchase in the last 12 months. That single transaction was for US$268k worth of shares at a price of US$2.69 each. We do like to see buying, but this purchase was made at well below the current price of US$3.94. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 180.00k shares worth US$499k. But insiders sold 20.00k shares worth US$63k. In total, Arlington Asset Investment insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Arlington Asset Investment 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.

Insiders at Arlington Asset Investment Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Arlington Asset Investment. President J. Tonkel bought US$77k worth in that time. On the other hand, President J. Tonkel sold US$63k worth of shares. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

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 Arlington Asset Investment insiders own 2.5% of the company, worth about US$3.4m. We prefer to see high levels of insider ownership.

So What Do The Arlington Asset Investment Insider Transactions Indicate?

Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Arlington Asset Investment stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arlington Asset Investment. At Simply Wall St, we've found that Arlington Asset Investment has 4 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

Of course Arlington Asset Investment 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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