Brian Murphy Is The President of American Outdoor Brands, Inc. (NASDAQ:AOUT) And They Just Picked Up 21% More Shares
Potential American Outdoor Brands, Inc. (NASDAQ:AOUT) shareholders may wish to note that the President, Brian Murphy, recently bought US$101k worth of stock, paying US$8.95 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 21%.
Check out our latest analysis for American Outdoor Brands
The Last 12 Months Of Insider Transactions At American Outdoor Brands
In the last twelve months, the biggest single purchase by an insider was when Independent Director Gregory Gluchowski bought US$104k worth of shares at a price of US$18.85 per share. That means that an insider was happy to buy shares at above the current price of US$9.35. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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.
While American Outdoor Brands insiders bought shares during the last year, they didn't sell. The average buy price was around US$13.55. 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does American Outdoor Brands 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. We usually like to see fairly high levels of insider ownership. Our data suggests American Outdoor Brands insiders own 1.6% of the company, worth about US$2.1m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At American Outdoor Brands Tell Us?
It is good to see recent purchasing. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that American Outdoor Brands insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for American Outdoor Brands you should know about.
But note: American Outdoor Brands 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.
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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.
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