Independent Non-Executive Director of Phibro Animal Health E. Corcoran Buys 25% More Shares

Investors who take an interest in Phibro Animal Health Corporation (NASDAQ:PAHC) should definitely note that the Independent Non-Executive Director, E. Corcoran, recently paid US$20.02 per share to buy US$100k worth of the stock. That’s a very solid buy in our book, and increased their holding by a noteworthy 25%.

Check out our latest analysis for Phibro Animal Health

The Last 12 Months Of Insider Transactions At Phibro Animal Health

In fact, the recent purchase by E. Corcoran was the biggest purchase of Phibro Animal Health shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$19.46. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. E. Corcoran was the only individual insider to buy during the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Phibro Animal Health Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Phibro Animal Health insiders own 50% of the company, currently worth about US$395m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Phibro Animal Health Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Phibro Animal Health insiders are well aligned, and quite possibly think the share price is too low. Nice! While it’s good to be aware of 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 4 warning signs for Phibro Animal Health (of which 1 doesn’t sit too well with us!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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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.