Yahoo Finance Have Insiders Been Buying American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) Shares This Year?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in American Axle & Manufacturing Holdings, Inc. (NYSE:AXL).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
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. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for American Axle & Manufacturing Holdings
The Last 12 Months Of Insider Transactions At American Axle & Manufacturing Holdings
Notably, that recent purchase by Herbert Parker is the biggest insider purchase of American Axle & Manufacturing Holdings shares that we've seen in the last year. That means that even when the share price was higher than US$4.88 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. 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.
American Axle & Manufacturing Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by 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!
American Axle & Manufacturing Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at American Axle & Manufacturing Holdings Have Bought Stock Recently
Over the last quarter, American Axle & Manufacturing Holdings insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$211k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of American Axle & Manufacturing Holdings
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that American Axle & Manufacturing Holdings insiders own about US$8.6m worth of shares (which is 1.6% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The American Axle & Manufacturing Holdings Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on American Axle & Manufacturing Holdings stock. 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. For example, American Axle & Manufacturing Holdings has 2 warning signs (and 1 which shouldn't be ignored) we think 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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