Even if it's not a huge purchase, we think it was good to see that Nicholas Swenson, the Chairman of Air T, Inc. (NASDAQ:AIRT) recently shelled out US$79k to buy stock, at US$10.50 per share. That might not be a big purchase but it only increased their holding by 2.4%, and could be interpreted as a good sign.
The Last 12 Months Of Insider Transactions At Air T
Over the last year, we can see that the biggest insider purchase was by Lead Independent Director Raymond Cabillot for US$89k worth of shares, at about US$19.67 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$12.75). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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.
Happily, we note that in the last year insiders paid US$232k for 15.00k shares. But they sold 4500 shares for US$74k. Overall, Air T insiders were net buyers last year. Their average price was about US$15.48. These transactions suggest that insiders have considered the current price attractive. 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!
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).
Insider Ownership of Air T
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Air T insiders own 7.7% of the company, worth about US$2.9m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Air T Tell Us?
We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Air T insiders are doubting the company. 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. Case in point: We've spotted 5 warning signs for Air T you should be aware of, and 3 of these shouldn't be ignored.
Of course Air T 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.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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