Insider Spends US$1.0m Buying More Shares In Amcor

Those following along with Amcor plc (NYSE:AMCR) will no doubt be intrigued by the recent purchase of shares by Peter Konieczny, CEO & Director of the company, who spent a stonking US$1.0m on stock at an average price of US$10.05. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 28%.

Check out our latest analysis for Amcor

Amcor Insider Transactions Over The Last Year

Notably, that recent purchase by Peter Konieczny is the biggest insider purchase of Amcor shares that we've seen in the last year. That implies that an insider found the current price of US$10.10 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Amcor share holders is that an insider was buying at near the current price. Peter Konieczny was the only individual insider to buy during 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Amcor

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.4% of Amcor shares, worth about US$56m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Amcor Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Amcor 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. You'd be interested to know, that we found 2 warning signs for Amcor and we suggest you have a look.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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