Yahoo Finance How Many Academies Australasia Group Limited (ASX:AKG) Shares Did Insiders Buy, In The Last Year?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Academies Australasia Group Limited (ASX:AKG).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
See our latest analysis for Academies Australasia Group
Academies Australasia Group Insider Transactions Over The Last Year
The Independent Non-Executive Chairman John Schlederer made the biggest insider purchase in the last 12 months. That single transaction was for AU$127k worth of shares at a price of AU$0.25 each. That means that an insider was happy to buy shares at above the current price of AU$0.24. 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. 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.
While Academies Australasia Group insiders bought shares during the last year, they didn't sell. They paid about AU$0.28 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Academies Australasia Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Academies Australasia Group Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Academies Australasia Group. Independent Non-Executive Chairman John Schlederer shelled out AU$52k for shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.
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. Academies Australasia Group insiders own 85% of the company, currently worth about AU$26m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Academies Australasia Group Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Academies Australasia Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Academies Australasia Group. You'd be interested to know, that we found 3 warning signs for Academies Australasia Group and we suggest you have a look.
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, 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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