- South Africa
Quite a few insiders invested in Aspen Pharmacare Holdings Limited (JSE:APN) last year which is positive news for shareholders
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Aspen Pharmacare Holdings Limited (JSE:APN), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Aspen Pharmacare Holdings
Aspen Pharmacare Holdings Insider Transactions Over The Last Year
The Group CEO & Executive Director Stephen Saad made the biggest insider purchase in the last 12 months. That single transaction was for R3.7m worth of shares at a price of R256 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being R150). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Aspen Pharmacare Holdings insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Aspen Pharmacare Holdings 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.
Does Aspen Pharmacare Holdings Boast High Insider Ownership?
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 great to see that Aspen Pharmacare Holdings insiders own 16% of the company, worth about R11b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Aspen Pharmacare Holdings Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Aspen Pharmacare Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Aspen Pharmacare Holdings.
But note: Aspen Pharmacare Holdings 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.
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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Find out whether Aspen Pharmacare Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
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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.
Aspen Pharmacare Holdings
Aspen Pharmacare Holdings Limited, together with its subsidiaries, manufactures and supplies specialty and branded pharmaceutical products worldwide.
Flawless balance sheet with moderate growth potential.