Have Insiders Been Buying Armstrong Flooring, Inc. (NYSE:AFI) Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Armstrong Flooring, Inc. (NYSE:AFI).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for Armstrong Flooring
Armstrong Flooring Insider Transactions Over The Last Year
The President Michel Vermette made the biggest insider purchase in the last 12 months. That single transaction was for US$170k worth of shares at a price of US$2.03 each. Even though the purchase was made at a significantly lower price than the recent price (US$3.73), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Armstrong Flooring insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Armstrong Flooring
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$1.8m worth of Armstrong Flooring stock, about 2.3% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Armstrong Flooring Tell Us?
The fact that there have been no Armstrong Flooring insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Armstrong Flooring insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Armstrong Flooring. At Simply Wall St, we've found that Armstrong Flooring has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
Of course Armstrong Flooring 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.
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. 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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