In This Article:
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Federal Agricultural Mortgage Corporation (NYSE:AGM).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Federal Agricultural Mortgage
The Last 12 Months Of Insider Transactions At Federal Agricultural Mortgage
In the last twelve months, the biggest single purchase by an insider was when Independent Director James Engebretsen bought US$507k worth of shares at a price of US$102 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$96.72). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. James Engebretsen was the only individual insider to buy during the last year.
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 plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Federal Agricultural Mortgage Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Federal Agricultural Mortgage, over the last three months. Independent Director James Engebretsen spent US$507k on stock. But insiders only sold shares worth US$237k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.