Yahoo Finance Bullish insiders at Angel Oak Mortgage, Inc. (NYSE:AOMR) loaded up on US$758k of stock earlier this year
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Angel Oak Mortgage, Inc.'s (NYSE:AOMR) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Angel Oak Mortgage
The Last 12 Months Of Insider Transactions At Angel Oak Mortgage
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Michael Fierman bought US$475k worth of shares at a price of US$19.00 per share. That means that even when the share price was higher than US$14.18 (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. 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.
In the last twelve months Angel Oak Mortgage insiders were buying shares, but not selling. 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!
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.
Insiders at Angel Oak Mortgage Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Angel Oak Mortgage. In total, insiders bought US$126k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership of Angel Oak Mortgage
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Angel Oak Mortgage insiders own about US$6.7m worth of shares (which is 1.9% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Angel Oak Mortgage Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Angel Oak Mortgage insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Angel Oak Mortgage and understanding them should be part of your investment process.
Of course Angel Oak Mortgage 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.
