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Have Insiders Been Buying Air T, Inc. (NASDAQ:AIRT) Shares This Year?

Simply Wall St

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Air T, Inc. (NASDAQ:AIRT).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.

Check out our latest analysis for Air T

Air T Insider Transactions Over The Last Year

Lead Independent Director Raymond Cabillot made the biggest insider purchase in the last 12 months. That single transaction was for US$89k worth of shares at a price of US$19.67 each. So it's clear an insider wanted to buy, at around the current price, which is US$20.00. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Air T share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Raymond Cabillot.

Raymond Cabillot purchased 7.50k shares over the year. The average price per share was US$20.46. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGM:AIRT Recent Insider Trading, December 30th 2019
NasdaqGM:AIRT Recent Insider Trading, December 30th 2019

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.

Air T Insiders Bought Stock Recently

There has been significantly more insider buying, than selling, at Air T, over the last three months. In total, Lead Independent Director Raymond Cabillot bought US$153k worth of shares in that time. But we did see Director Seth Barkett sell shares worth US$18k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Does Air T Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 7.5% of Air T shares, worth about US$4.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Air T Insider Transactions Indicate?

The recent insider purchase is heartening. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Air T insiders are reasonably well aligned, and optimistic for the future. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.

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, 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.