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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in American Woodmark Corporation (NASDAQ:AMWD).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.
View our latest analysis for American Woodmark
The Last 12 Months Of Insider Transactions At American Woodmark
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Vance Tang for US$432k worth of shares, at about US$73.25 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$91.99. 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.
Over the last year, we can see that insiders have bought 6.59k shares worth US$483k. But insiders sold 4.18k shares worth US$357k. In total, American Woodmark insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
American Woodmark is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at American Woodmark Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at American Woodmark. We note Independent Director Daniel Hendrix cashed in US$357k worth of shares. Meanwhile Director David Rodriguez bought US$51k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.