Yahoo Finance Insider Buying: The Advance NanoTek Limited (ASX:ANO) Non-Executive Chairman Just Bought AU$72k Worth Of Shares
Even if it's not a huge purchase, we think it was good to see that Lev Mizikovsky, the Non-Executive Chairman of Advance NanoTek Limited (ASX:ANO) recently shelled out AU$72k to buy stock, at AU$3.60 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
See our latest analysis for Advance NanoTek
Advance NanoTek Insider Transactions Over The Last Year
Notably, that recent purchase by Non-Executive Chairman Lev Mizikovsky was not the only time they bought Advance NanoTek shares this year. They previously made an even bigger purchase of AU$257k worth of shares at a price of AU$4.20 per share. That means that even when the share price was higher than AU$3.70 (the recent price), an insider wanted to purchase shares. 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. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Lev Mizikovsky.
Lev Mizikovsky purchased 182.76k shares over the year. The average price per share was AU$2.95. 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!
Advance NanoTek is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Advance NanoTek insiders own about AU$131m worth of shares (which is 59% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Advance NanoTek Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Advance NanoTek insiders are well aligned, and quite possibly think the share price is too low. Looks promising! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 2 warning signs we've spotted with Advance NanoTek (including 1 which is a bit concerning).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
This article by Simply Wall St is general in nature. 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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