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Insiders who bought Archer-Daniels-Midland Company (NYSE:ADM) in the last 12 months may probably not pay attention to the stock's recent 6.8% drop. Reason being, despite the recent loss, insiders original purchase value of US$1.3m is now worth US$1.4m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Archer-Daniels-Midland Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman Juan Luciano for US$1m worth of shares, at about US$59.54 per share. That means that an insider was happy to buy shares at around the current price of US$62.21. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Archer-Daniels-Midland share holders is that insiders were buying at near the current price.
In the last twelve months Archer-Daniels-Midland insiders were buying shares, but not selling. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Archer-Daniels-Midland Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Archer-Daniels-Midland insiders own 0.4% of the company, worth about US$128m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Archer-Daniels-Midland Insiders?
It doesn't really mean much that no insider has traded Archer-Daniels-Midland shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Archer-Daniels-Midland insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. Every company has risks, and we've spotted 1 warning sign for Archer-Daniels-Midland you should know about.
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.
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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.