AMA Group Limited (ASX:AMA) shareholders (or potential shareholders) will be happy to see that the Independent Non-Executive Chairman, Brian Austin, recently bought a whopping AU$1.6m worth of stock, at a price of AU$0.042. That purchase boosted their holding by 122%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for AMA Group

The Last 12 Months Of Insider Transactions At AMA Group

In fact, the recent purchase by Brian Austin was the biggest purchase of AMA Group shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of AU$0.049. 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.

AMA Group insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.053. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insider Ownership Of AMA Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests AMA Group insiders own 3.6% of the company, worth about AU$6.7m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.

So What Do The AMA Group Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that AMA Group insiders are expecting a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of AMA Group.