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Investors who take an interest in Affiliated Managers Group, Inc. (NYSE:AMG) should definitely note that the Independent Director, Reuben Jeffery, recently paid US$160 per share to buy US$401k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 14%.
Affiliated Managers Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Jay Horgen bought US$593k worth of shares at a price of US$59.26 per share. We do like to see buying, but this purchase was made at well below the current price of US$174. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Affiliated Managers Group insiders bought shares during the last year, they didn't sell. The average buy price was around US$86.90. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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.
Does Affiliated Managers Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Affiliated Managers Group insiders own about US$38m worth of shares. That equates to 0.5% 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.
What Might The Insider Transactions At Affiliated Managers Group Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Affiliated Managers Group shares, given these transactions (along with notable insider ownership of the company). 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. Our analysis shows 3 warning signs for Affiliated Managers Group (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
This article by Simply Wall St is general in nature. 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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