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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 Argosy Property Limited's (NZSE:ARG) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Argosy Property
Argosy Property Insider Transactions Over The Last Year
The Independent Chairman Jeff Morrison made the biggest insider purchase in the last 12 months. That single transaction was for NZ$199k worth of shares at a price of NZ$1.78 each. That means that even when the share price was higher than NZ$1.11 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Jeff Morrison was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid NZ$616k for 516.37k shares. But insiders sold 43.53k shares worth NZ$48k. In the last twelve months there was more buying than selling by Argosy Property insiders. Their average price was about NZ$1.19. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Argosy Property is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Insiders own 2.1% of Argosy Property shares, worth about NZ$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Argosy Property Tell Us?
It doesn't really mean much that no insider has traded Argosy Property shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Argosy Property and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Argosy Property. At Simply Wall St, we found 1 warning sign for Argosy Property that deserve your attention before buying any shares.