Bullish American Outdoor Brands, Inc. (NASDAQ:AOUT) insiders filled their treasuries with US$616k worth of stock over last year
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in American Outdoor Brands, Inc.'s (NASDAQ:AOUT) 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.
See our latest analysis for American Outdoor Brands
The Last 12 Months Of Insider Transactions At American Outdoor Brands
The Independent Director Bradley Favreau made the biggest insider purchase in the last 12 months. That single transaction was for US$110k worth of shares at a price of US$8.75 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$10.06. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While American Outdoor Brands insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
American Outdoor Brands is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, American Outdoor Brands insiders have about 2.4% of the stock, worth approximately US$3.3m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About American Outdoor Brands Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think American Outdoor Brands insiders are doubting the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that American Outdoor Brands has 1 warning sign and it would be unwise to ignore it.
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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