In This Article:
Quite a few insiders have dramatically grown their holdings in Advanced Flower Capital Inc. (NASDAQ:AFCG) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Advanced Flower Capital
The Executive Chairman Leonard Tannenbaum made the biggest insider purchase in the last 12 months. That single transaction was for US$708k worth of shares at a price of US$12.09 each. That means that even when the share price was higher than US$5.55 (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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Advanced Flower Capital insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$7.98. This is nice to see since it implies that insiders might see value around current prices. 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!
View our latest analysis for Advanced Flower Capital
Advanced Flower Capital is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Advanced Flower Capital Insiders Bought Stock Recently
Over the last quarter, Advanced Flower Capital insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$931k worth of shares. This makes one think the business has some good points.
Does Advanced Flower Capital Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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 Advanced Flower Capital insiders own 19% of the company, worth about US$24m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.