Insiders who bought Apartment Investment and Management Company (NYSE:AIV) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$52m as a result of the stock's 4.7% gain over the same period. As a result, the stock they originally bought for US$10m is now worth US$13m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Apartment Investment and Management
In the last twelve months, the biggest single purchase by an insider was when Director Terry Considine bought US$2.9m worth of shares at a price of US$6.61 per share. Even though the purchase was made at a significantly lower price than the recent price (US$7.54), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$10m for 1.68m shares. But insiders sold 12.20k shares worth US$75k. Overall, Apartment Investment and Management insiders were net buyers 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Apartment Investment and Management is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Apartment Investment and Management
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 2.6% of Apartment Investment and Management shares, worth about US$30m. 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 Apartment Investment and Management Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Apartment Investment and Management shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Apartment Investment and Management and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Apartment Investment and Management. While conducting our analysis, we found that Apartment Investment and Management has 2 warning signs and it would be unwise to ignore them.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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.