Investors who take an interest in Afone S.A. (EPA:AFO) should definitely note that the Chairman & CEO, Philip Fournier, recently paid €13.00 per share to buy €317k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 0.9%.
The Last 12 Months Of Insider Transactions At Afone
In fact, the recent purchase by Philip Fournier was the biggest purchase of Afone shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is €13.00. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Afone share holders is that insiders were buying at near the current price.
Afone insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Afone 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 of Afone
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Afone insiders own 93% of the company, worth about €45m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Afone Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Afone insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! Along with insider transactions, I recommend checking if Afone is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Afone 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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