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It is not uncommon to see companies perform well in the years after insiders buy shares. 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 shareholders might well want to know whether insiders have been buying or selling shares in Aspermont Limited (ASX:ASP).
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, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
See our latest analysis for Aspermont
The Last 12 Months Of Insider Transactions At Aspermont
In the last twelve months, the biggest single purchase by an insider was when insider Thomas Klinger bought AU$1.0m worth of shares at a price of AU$0.13 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.007). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 90.91m shares worth AU$1.0m. But insiders sold 18.57m shares worth AU$130k. Overall, Aspermont insiders were net buyers during the last year. They paid about AU$0.012 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Aspermont 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 Aspermont Have Sold Stock Recently
We've seen more insider selling than insider buying at Aspermont recently. In that time, Chairman Andrew Kent dumped AU$130k worth of shares. Meanwhile Alternate Director John Stark bought AU$2.2k worth. Generally this level of net selling might be considered a bit bearish.