Even if it's not a huge purchase, we think it was good to see that Peter Lancken, the Independent Non-Executive Chairman of Acrow Formwork and Construction Services Limited (ASX:ACF) recently shelled out AU$100k to buy stock, at AU$0.75 per share. Although the purchase is not a big one, increasing their shareholding by only 1.1%, it can be interpreted as a good sign.
View our latest analysis for Acrow Formwork and Construction Services
The Last 12 Months Of Insider Transactions At Acrow Formwork and Construction Services
The CEO, MD & Executive Director Steven Boland made the biggest insider purchase in the last 12 months. That single transaction was for AU$136k worth of shares at a price of AU$0.53 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.76), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 1.10m shares for AU$606k. But insiders sold 301.10k shares worth AU$160k. In the last twelve months there was more buying than selling by Acrow Formwork and Construction Services insiders. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Acrow Formwork and Construction Services Boast High 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. It appears that Acrow Formwork and Construction Services insiders own 13% of the company, worth about AU$26m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Acrow Formwork and Construction Services Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Acrow Formwork and Construction Services insiders are well aligned, and that they may think the share price is too low. 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. You'd be interested to know, that we found 4 warning signs for Acrow Formwork and Construction Services and we suggest you have a look.