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Insider Buying: The Auswide Bank Ltd (ASX:ABA) MD & Executive Director Just Bought AU$278k Worth Of Shares

Simply Wall St

Investors who take an interest in Auswide Bank Ltd (ASX:ABA) should definitely note that the MD & Executive Director, Martin Barrett, recently paid AU$5.15 per share to buy AU$278k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 40%.

Check out our latest analysis for Auswide Bank

Auswide Bank Insider Transactions Over The Last Year

Notably, that recent purchase by Martin Barrett is the biggest insider purchase of Auswide Bank shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$4.40). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Martin Barrett was the only individual insider to buy shares in the last twelve months. Notably Martin Barrett was also the biggest seller.

Martin Barrett bought 54.95k shares over the last 12 months at an average price of AU$5.15. 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!

ASX:ABA Recent Insider Trading, March 17th 2020

Auswide Bank is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Auswide Bank

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Auswide Bank insiders own about AU$23m worth of shares. That equates to 13% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Auswide Bank Insiders?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Auswide Bank insiders are doubting the company, and they do own shares. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Auswide Bank.

Of course Auswide Bank 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 editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.