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Even if it's not a huge purchase, we think it was good to see that Robert Peach, the Independent Non-Executive Director of Amplia Therapeutics Limited (ASX:ATX) recently shelled out AU$125k to buy stock, at AU$0.11 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 25%.
View our latest analysis for Amplia Therapeutics
Amplia Therapeutics Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Allan Moss bought AU$296k worth of shares at a price of AU$0.055 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.086), we still think insider buying is a positive. 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.
In the last twelve months Amplia Therapeutics insiders were buying shares, but not selling. They paid about AU$0.072 on average. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!
Amplia Therapeutics 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
For a common shareholder, it is worth checking how many shares are held by company 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. Amplia Therapeutics insiders own about AU$5.0m worth of shares. That equates to 17% 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.
So What Do The Amplia Therapeutics Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Amplia Therapeutics shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that Amplia Therapeutics is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable...