Whilst it may not be a huge deal, we thought it was good to see that the Argent Industrial Limited (JSE:ART) Non Executive Chairman, Teunis Scharrighuisen, recently bought R750k worth of stock, for R15.00 per share. Although the purchase is not a big one, increasing their shareholding by only 6.3%, it can be interpreted as a good sign.

See our latest analysis for Argent Industrial

The Last 12 Months Of Insider Transactions At Argent Industrial

The CEO & Executive Director Treve Hendry made the biggest insider purchase in the last 12 months. That single transaction was for R2.3m worth of shares at a price of R12.89 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of R15.00. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 415.85k shares for R5.4m. But insiders sold 70.99k shares worth R1.1m. In total, Argent Industrial 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Argent Industrial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 16% of Argent Industrial shares, worth about R132m. 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 Argent Industrial Insider Transactions Indicate?

The stark truth for Argent Industrial is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Argent Industrial you should know about.

But note: Argent Industrial may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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