Yahoo Finance Airtel Africa Plc (LON:AAF) insiders are still down US$18k after purchasing last year, recent gain helped regain some losses
Insiders who bought US$198k worth of Airtel Africa Plc (LON:AAF) stock in the last year have seen some of their losses recouped as the stock gained 8.9% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$18k since the time of purchase.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Airtel Africa
Airtel Africa Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director John Danilovich for UK£100k worth of shares, at about UK£1.13 per share. That implies that an insider found the current price of UK£1.20 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Airtel Africa share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was John Danilovich.
John Danilovich bought 150.00k shares over the last 12 months at an average price of UK£1.32. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Airtel Africa is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own UK£1.4m worth of Airtel Africa stock, about 0.03% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Airtel Africa Tell Us?
It doesn't really mean much that no insider has traded Airtel Africa shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Airtel Africa insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Airtel Africa that deserve your attention before buying any shares.
Of course Airtel Africa may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.
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