Ascent Industries President & CEO Acquires 9.0% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the Ascent Industries Co. (NASDAQ:ACNT) President & CEO, J. Kitchen, recently bought US$55k worth of stock, for US$11.99 per share. However, it only increased their shares held by 9.0%, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Ascent Industries

The Last 12 Months Of Insider Transactions At Ascent Industries

In fact, the recent purchase by President & CEO J. Kitchen was not their only acquisition of Ascent Industries shares this year. They previously made an even bigger purchase of US$96k worth of shares at a price of US$8.61 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.76. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Ascent Industries insiders may have bought shares in the last year, but they didn't sell any. They paid about US$9.50 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Ascent Industries Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 18% of Ascent Industries shares, worth about US$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Ascent Industries Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Ascent Industries insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Ascent Industries and understanding it should be part of your investment process.

Of course Ascent Industries 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 of direct interests only, but not derivative transactions or indirect interests.

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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.