Yahoo Finance Non-Executive Director Simon Moore Just Bought A Handful Of Shares In AMA Group Limited (ASX:AMA)
Whilst it may not be a huge deal, we thought it was good to see that the AMA Group Limited (ASX:AMA) Non-Executive Director, Simon Moore, recently bought AU$122k worth of stock, for AU$0.49 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
View our latest analysis for AMA Group
The Last 12 Months Of Insider Transactions At AMA Group
Over the last year, we can see that the biggest insider purchase was by insider Andrew Hopkins for AU$2.3m worth of shares, at about AU$0.78 per share. That means that an insider was happy to buy shares at above the current price of AU$0.45. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Andrew Hopkins was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 4.38m shares for AU$3.2m. But insiders sold 347.06k shares worth AU$246k. In the last twelve months there was more buying than selling by AMA Group insiders. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of AMA Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that AMA Group insiders own 5.5% of the company, worth about AU$18m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About AMA Group Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in AMA Group shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AMA Group. To help with this, we've discovered 2 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in AMA Group.
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.
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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