Yahoo Finance Quite a few insiders invested in Aptitude Software Group plc (LON:APTD) last year which is positive news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Aptitude Software Group plc's (LON:APTD) case, it's fantastic news for shareholders.
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 Aptitude Software Group
Aptitude Software Group Insider Transactions Over The Last Year
The Independent Non-Executive Chairman Ivan Martin made the biggest insider purchase in the last 12 months. That single transaction was for UK£152k worth of shares at a price of UK£3.04 each. We do like to see buying, but this purchase was made at well below the current price of UK£3.70. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Aptitude Software Group insiders may have bought shares in the last year, but they didn't sell any. 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!
Aptitude Software Group 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.
Insider Ownership
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. Aptitude Software Group insiders own about UK£18m worth of shares. That equates to 8.5% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Aptitude Software Group Insiders?
The fact that there have been no Aptitude Software Group insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Aptitude Software Group 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 Aptitude Software Group. In terms of investment risks, we've identified 2 warning signs with Aptitude Software Group and understanding these should be part of your investment process.
But note: Aptitude Software Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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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