In the last year, multiple insiders have substantially increased their holdings of Aurizon Holdings Limited (ASX:AZJ) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Aurizon Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by MD, CEO & Director Andrew Harding was not their only acquisition of Aurizon Holdings shares this year. Earlier in the year, they paid AU$3.43 per share in a AU$3.4m purchase. That means that an insider was happy to buy shares at around the current price of AU$3.66. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider purchases were made at close to current prices. Notably Andrew Harding was also the biggest seller.
Happily, we note that in the last year insiders paid AU$4.5m for 1.30m shares. On the other hand they divested 229.96k shares, for AU$813k. In the last twelve months there was more buying than selling by Aurizon Holdings 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!
Aurizon Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Aurizon Holdings Insiders Bought Stock Recently
There was some insider buying at Aurizon Holdings over the last quarter. They bought AU$862k worth in that time. But MD, CEO & Director Andrew Harding sold AU$813k worth. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of Aurizon Holdings shares, worth about AU$12m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Aurizon Holdings Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Aurizon Holdings and their transactions don't cause us concern. 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. Every company has risks, and we've spotted 2 warning signs for Aurizon Holdings you should know about.
Of course Aurizon Holdings 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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