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Multiple insiders secured a larger position in American Woodmark Corporation (NASDAQ:AMWD) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for American Woodmark
American Woodmark Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Vance Tang for US$530k worth of shares, at about US$52.95 per share. That means that an insider was happy to buy shares at above the current price of US$50.99. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 American Woodmark 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!
American Woodmark is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of American Woodmark
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that American Woodmark insiders own 1.0% of the company, worth about US$8.9m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At American Woodmark Tell Us?
The fact that there have been no American Woodmark insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more American Woodmark stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, American Woodmark has 3 warning signs (and 1 which can't be ignored) we think you should know about.