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It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in The Artisanal Spirits Company plc's (LON:ART) case, it's fantastic news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Artisanal Spirits
The Last 12 Months Of Insider Transactions At Artisanal Spirits
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman of the Board Mark Hunter for UK£46k worth of shares, at about UK£0.44 per share. That means that even when the share price was higher than UK£0.39 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Artisanal Spirits insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Artisanal Spirits Insiders Bought Stock Recently
It's good to see that Artisanal Spirits insiders have made notable investments in the company's shares. Overall, three insiders shelled out UK£58k for shares in the company -- and none sold. This makes one think the business has some good points.
Does Artisanal Spirits Boast High 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. Artisanal Spirits insiders own about UK£7.8m worth of shares. That equates to 29% of the company. 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 Artisanal Spirits Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Artisanal Spirits we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Artisanal Spirits. Every company has risks, and we've spotted 3 warning signs for Artisanal Spirits (of which 2 don't sit too well with us!) you should know about.