Yahoo Finance Bullish Apiam Animal Health Limited (ASX:AHX) insiders filled their treasuries with AU$4.7m worth of stock over last year
In the last year, multiple insiders have substantially increased their holdings of Apiam Animal Health Limited (ASX:AHX) stock, indicating that insiders' optimism about the company's prospects has increased.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Apiam Animal Health
Apiam Animal Health Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by MD & Executive Director Christopher Richards for AU$4.5m worth of shares, at about AU$0.70 per share. That means that even when the share price was higher than AU$0.50 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. We note that Christopher Richards was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 6.76m shares for AU$4.7m. But insiders sold 458.37k shares worth AU$354k. In total, Apiam Animal Health insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Apiam Animal Health 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.
Insider Ownership Of Apiam Animal Health
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Apiam Animal Health insiders own 27% of the company, worth about AU$24m. 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 Apiam Animal Health Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Apiam Animal Health shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Apiam Animal Health insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Apiam Animal Health is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...
But note: Apiam Animal Health 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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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.
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