Argan Insider Ups Holding By 74% During Year
From what we can see, insiders were net buyers in Argan, Inc.'s (NYSE:AGX ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
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.
Check out our latest analysis for Argan
The Last 12 Months Of Insider Transactions At Argan
In fact, the recent purchase by Independent Director Cynthia Flanders was not their only acquisition of Argan shares this year. They previously made an even bigger purchase of US$188k worth of shares at a price of US$26.88 per share. Even though the purchase was made at a significantly lower price than the recent price (US$44.95), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Cynthia Flanders bought 8.50k shares over the last 12 months at an average price of US$30.35. 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!
Argan is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Argan Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.0% of Argan shares, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Argan Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Argan insiders are well aligned, and that they may think the share price is too low. Of course, the future is what matters most. So if you are interested in Argan, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
