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Over the last year, a good number of insiders have significantly increased their holdings in Ashley Services Group Limited (ASX:ASH). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Ashley Services Group
The Last 12 Months Of Insider Transactions At Ashley Services Group
Over the last year, we can see that the biggest insider purchase was by MD & Executive Director Ross Shrimpton for AU$841k worth of shares, at about AU$0.21 per share. That means that even when the share price was higher than AU$0.18 (the recent price), an insider wanted to purchase shares. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Ashley Services Group 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Ashley Services Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Ashley Services Group Insiders Bought Stock Recently
We saw some Ashley Services Group insider buying shares in the last three months. CFO & Executive Director Paul Brittain purchased AU$19k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
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. We usually like to see fairly high levels of insider ownership. Ashley Services Group insiders own 65% of the company, currently worth about AU$17m 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.