Yahoo Finance Have Insiders Been Selling AVZ Minerals Limited (ASX:AVZ) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell AVZ Minerals Limited (ASX:AVZ), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for AVZ Minerals
The Last 12 Months Of Insider Transactions At AVZ Minerals
In the last twelve months, the biggest single sale by an insider was when Klaus Eckhof sold AU$2.9m worth of shares at a price of AU$0.14 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is AU$0.076. So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 1.20m shares worth AU$82k. But they sold 34.50m for AU$5.1m. Over the last year we saw more insider selling of AVZ Minerals shares, than buying. They sold for an average price of about AU$0.15. Insider selling doesn’t make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of AU$0.076. The chart below shows insider transactions over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
AVZ Minerals 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.
AVZ Minerals Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at AVZ Minerals. Overall, 2 insiders shelled out AU$82k for shares in the company — and none sold. That shows some optimism about the company’s future.
Does AVZ Minerals Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. AVZ Minerals insiders own 12% of the company, currently worth about AU$17m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About AVZ Minerals Insiders?
It’s certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn’t so positive. We don’t take much heart from transactions by AVZ Minerals insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. Along with insider transactions, I recommend checking if AVZ Minerals is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
