Yahoo Finance Keith Knowles of Advanced Braking Technology Limited (ASX:ABV) Just Spent AU$144k On Shares
Potential Advanced Braking Technology Limited (ASX:ABV) shareholders may wish to note that insider Keith Knowles recently bought AU$144k worth of stock, paying AU$0.034 for each share. Although the purchase only increased their holding by 7.4%, it is still a solid purchase in our view.
View our latest analysis for Advanced Braking Technology
Advanced Braking Technology Insider Transactions Over The Last Year
In fact, the recent purchase by insider Keith Knowles was not their only acquisition of Advanced Braking Technology shares this year. They previously made an even bigger purchase of AU$266k worth of shares at a price of AU$0.036 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.031). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Keith Knowles. Notably Keith Knowles was also the biggest seller.
Keith Knowles bought 28.44m shares over the last 12 months at an average price of AU$0.037. 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!
Advanced Braking Technology is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Advanced Braking Technology Boast High 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. We usually like to see fairly high levels of insider ownership. It's great to see that Advanced Braking Technology insiders own 59% of the company, worth about AU$6.9m. 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 Do The Advanced Braking Technology Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Advanced Braking Technology. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Advanced Braking Technology is showing 3 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...
But note: Advanced Braking Technology 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.
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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