It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Agilysys Inc (NASDAQ:AGYS).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, including certain disclosures.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
View our latest analysis for Agilysys
The Last 12 Months Of Insider Transactions At Agilysys
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Ramesh Srinivasan bought US$538k worth of shares at a price of US$15.40 per share. That means that an insider was happy to buy shares at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. In any event it’s generally a positive if insiders are buying shares at around the current price. The only inside buyer over the last year was Ramesh Srinivasan.
The chart below shows insider transactions over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Agilysys Have Sold Stock Recently
The last quarter saw substantial insider selling of Agilysys shares. In total, Vice Chairman Keith Kolerus sold US$225k worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership of Agilysys
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It’s good to see that Agilysys insiders own 4.3% of the company, worth about US$17m. While this is strong but not in the top group, when it comes to insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Agilysys Tell Us?
An insider sold stock recently, but they haven’t been buying. In contrast, they appear keener if you look at the last twelve months. But insiders own relatively little of the company, from what we can see. So overall it’s hard to argue insiders are bullish. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Agilysys.
But note: Agilysys may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.