Investors who take an interest in Arlington Asset Investment Corp. (NYSE:AAIC) should definitely note that the Non-Employee Independent Chairman, Daniel Berce, recently paid US$3.20 per share to buy US$160k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 333%, potentially signalling some real optimism.
Arlington Asset Investment Insider Transactions Over The Last Year
Notably, that recent purchase by Daniel Berce is the biggest insider purchase of Arlington Asset Investment shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$3.16. 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 Arlington Asset Investment 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!
Arlington Asset Investment is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Arlington Asset Investment Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Arlington Asset Investment insiders have about 4.2% of the stock, worth approximately US$4.0m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Arlington Asset Investment Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Arlington Asset Investment stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arlington Asset Investment. At Simply Wall St, we found 2 warning signs for Arlington Asset Investment that deserve your attention before buying any shares.
Of course Arlington Asset Investment may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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.