Yahoo Finance Insiders who bought Aerometrex Limited (ASX:AMX) last year must be regretting not buying more as market cap hits AU$41m
Insiders who bought Aerometrex Limited (ASX:AMX) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$5.7m as a result of the stock's 16% gain over the same period. As a result, the stock they originally bought for AU$95k is now worth AU$97k.
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 Aerometrex
The Last 12 Months Of Insider Transactions At Aerometrex
The MD, CEO & Director Steven Masters made the biggest insider purchase in the last 12 months. That single transaction was for AU$75k worth of shares at a price of AU$0.42 each. That implies that an insider found the current price of AU$0.43 per share to be enticing. 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. 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 Aerometrex share holders is that insiders were buying at near the current price.
While Aerometrex insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 40% of Aerometrex shares, worth about AU$16m. 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 Aerometrex Insiders?
The fact that there have been no Aerometrex insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Aerometrex and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aerometrex. You'd be interested to know, that we found 2 warning signs for Aerometrex and we suggest you have a look.
Of course Aerometrex 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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