Australia markets close in 1 hour 16 minutes
  • ALL ORDS

    7,751.80
    -20.00 (-0.26%)
     
  • ASX 200

    7,543.70
    -14.40 (-0.19%)
     
  • AUD/USD

    0.6924
    +0.0000 (+0.00%)
     
  • OIL

    73.51
    +0.12 (+0.16%)
     
  • GOLD

    1,888.60
    +12.00 (+0.64%)
     
  • BTC-AUD

    33,101.76
    -819.45 (-2.42%)
     
  • CMC Crypto 200

    525.67
    -11.19 (-2.08%)
     
  • AUD/EUR

    0.6414
    +0.0003 (+0.05%)
     
  • AUD/NZD

    1.0950
    +0.0015 (+0.14%)
     
  • NZX 50

    12,197.15
    +44.95 (+0.37%)
     
  • NASDAQ

    12,573.36
    -229.74 (-1.79%)
     
  • FTSE

    7,901.80
    +81.64 (+1.04%)
     
  • Dow Jones

    33,926.01
    -127.89 (-0.38%)
     
  • DAX

    15,476.43
    -32.77 (-0.21%)
     
  • Hang Seng

    21,163.24
    -497.23 (-2.30%)
     
  • NIKKEI 225

    27,761.11
    +251.65 (+0.91%)
     

Abacus Property Group's (ASX:ABP) recent AU$133m market cap decline means a loss of AU$27k for insiders who bought this year

The recent price decline of 4.6% in Abacus Property Group's (ASX:ABP) stock may have disappointed insiders who bought AU$409k worth of shares at an average price of AU$3.56 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$382k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Abacus Property Group

The Last 12 Months Of Insider Transactions At Abacus Property Group

Over the last year, we can see that the biggest insider purchase was by MD & Director Steven Sewell for AU$409k worth of shares, at about AU$3.56 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$3.33). 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Steven Sewell was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. From looking at our data, insiders own AU$3.6m worth of Abacus Property Group stock, about 0.1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Abacus Property Group Tell Us?

It doesn't really mean much that no insider has traded Abacus Property Group shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Abacus Property Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Abacus Property Group. For instance, we've identified 3 warning signs for Abacus Property Group (2 don't sit too well with us) you should be aware of.

But note: Abacus Property Group 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.