Whilst it may not be a huge deal, we thought it was good to see that the Apiam Animal Health Limited (ASX:AHX) MD & Executive Director, Christopher Richards, recently bought AU$107k worth of stock, for AU$0.34 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn’t a massive purchase by absolute value, either.
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Apiam Animal Health Insider Transactions Over The Last Year
In fact, the recent purchase by MD & Executive Director Christopher Richards was not their only acquisition of Apiam Animal Health shares this year. Earlier in the year, they paid AU$0.35 per share in a AU$596k purchase. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.34). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it’s very important to consider the price insiders pay for shares. 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 Apiam Animal Health 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Apiam Animal Health is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Apiam Animal Health insiders own about AU$17m worth of shares. That equates to 26% 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 Apiam Animal Health Tell Us?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Apiam Animal Health insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Be aware that Apiam Animal Health is showing 4 warning signs in our investment analysis, and 1 of those shouldn’t be ignored…
Of course Apiam Animal Health 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 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.