Insider Stock Buying Reaches AU$10.0m On APM Human Services International
Over the last year, a good number of insiders have significantly increased their holdings in APM Human Services International Limited (ASX:APM). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for APM Human Services International
The Last 12 Months Of Insider Transactions At APM Human Services International
The Founder & Executive Chairman Megan Wynne made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.3m worth of shares at a price of AU$1.51 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.86). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
APM Human Services International insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$1.76 on average. This is nice to see since it implies that insiders might see value around current prices. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
APM Human Services International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At APM Human Services International Have Bought Stock Recently
Over the last quarter, APM Human Services International insiders have spent a meaningful amount on shares. Specifically, Founder & Executive Chairman Megan Wynne bought AU$4.0m worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership Of APM Human Services International
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. APM Human Services International insiders own about AU$215m worth of shares (which is 27% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At APM Human Services International Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about APM Human Services International. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing APM Human Services International. At Simply Wall St, we found 3 warning signs for APM Human Services International that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
