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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Associate Global Partners Limited's (ASX:APL) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Associate Global Partners
Associate Global Partners Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO, MD & Executive Director Martin Switzer for AU$358k worth of shares, at about AU$0.20 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.10). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
In the last twelve months Associate Global Partners insiders were buying shares, but not selling. 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!
Associate Global Partners is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Associate Global Partners insiders own 14% of the company, worth about AU$841k. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Associate Global Partners Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Associate Global Partners insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Associate Global Partners. Every company has risks, and we've spotted 5 warning signs for Associate Global Partners (of which 3 make us uncomfortable!) you should know about.