Insiders Of Aaron's Company Are Up 19% On Their US$621.7k Purchase
The Aaron's Company, Inc. (NYSE:AAN) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 16%, resulting in a US$35m rise in the company's market capitalisation, translating to a gain of 19% on their initial investment. In other words, the original US$621.7k purchase is now worth US$739.4k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Aaron's Company
Aaron's Company Insider Transactions Over The Last Year
Notably, that recent purchase by Douglas Lindsay is the biggest insider purchase of Aaron's Company shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$8.45), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Aaron's Company insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Aaron's Company Insiders Bought Stock Recently
Over the last quarter, Aaron's Company insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$622k worth of shares. This is a positive in our book as it implies some confidence.
Insider Ownership Of Aaron's Company
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Aaron's Company insiders own about US$6.4m worth of shares (which is 2.9% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Aaron's Company Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Aaron's Company insiders are reasonably well aligned, and optimistic for the future. 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. Case in point: We've spotted 4 warning signs for Aaron's Company you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
