Yahoo Finance Independent Non-Executive Director of AMA Group Picks Up 33% More Stock
Those following along with AMA Group Limited (ASX:AMA) will no doubt be intrigued by the recent purchase of shares by Simon Moore, Independent Non-Executive Director of the company, who spent a stonking AU$1.0m on stock at an average price of AU$0.075. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 33%.
View our latest analysis for AMA Group
The Last 12 Months Of Insider Transactions At AMA Group
In fact, the recent purchase by Simon Moore was the biggest purchase of AMA Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than AU$0.045 (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. 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.
In the last twelve months AMA Group insiders were buying shares, but not selling. They paid about AU$0.083 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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
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. Our data indicates that AMA Group insiders own about AU$3.2m worth of shares (which is 5.4% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The AMA Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that AMA Group insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AMA Group. For instance, we've identified 3 warning signs for AMA Group (1 doesn't sit too well with us) you should be aware of.
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 of direct interests only, but not derivative transactions or indirect interests.
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.
