Yahoo Finance Insider Buying: The Apiam Animal Health Limited (ASX:AHX) MD & Executive Director Just Bought 20% More Shares
Those following along with Apiam Animal Health Limited (ASX:AHX) will no doubt be intrigued by the recent purchase of shares by Christopher Richards, MD & Executive Director of the company, who spent a stonking AU$4.5m on stock at an average price of AU$0.70. Not only is that a big swing, but it increased their holding size by 20%, which is definitely great to see.
View our latest analysis for Apiam Animal Health
Apiam Animal Health Insider Transactions Over The Last Year
Notably, that recent purchase by Christopher Richards is the biggest insider purchase of Apiam Animal Health shares that we've seen in the last year. That implies that an insider found the current price of AU$0.72 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Apiam Animal Health share holders is that an insider was buying at near the current price. Christopher Richards was the only individual insider to buy shares in the last twelve months.
Christopher Richards bought a total of 6.60m shares over the year at an average price of AU$0.71. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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
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. Apiam Animal Health insiders own about AU$31m worth of shares. That equates to 28% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Apiam Animal Health Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Apiam Animal Health we think they are probably pretty confident of a bright future. 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. Every company has risks, and we've spotted 5 warning signs for Apiam Animal Health you should know about.
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.