APi Group Corporation (NYSE:APG) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 5.2%, resulting in a US$206m rise in the company's market capitalisation. As a result, their original purchase of US$549k worth of stock is now worth US$662k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
APi Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Anthony Malkin for US$547k worth of shares, at about US$14.47 per share. We do like to see buying, but this purchase was made at well below the current price of US$17.45. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
APi Group insiders may have bought shares in the last year, but they didn't sell any. 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!
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.
APi Group Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at APi Group. Specifically, Independent Director Anthony Malkin bought US$547k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does APi Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. APi Group insiders own about US$560m worth of shares (which is 14% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About APi Group Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about APi Group. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing APi Group. In terms of investment risks, we've identified 1 warning sign with APi Group and understanding it should be part of your investment process.
Of course APi Group 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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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.
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