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Have Insiders Been Selling AgroFresh Solutions, Inc. (NASDAQ:AGFS) Shares?

We often see insiders buying up shares in companies that perform well over the long term. 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 we’ll take a look at whether insiders have been buying or selling shares in AgroFresh Solutions, Inc. (NASDAQ:AGFS).

What Is Insider Buying?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. 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 AgroFresh Solutions

The Last 12 Months Of Insider Transactions At AgroFresh Solutions

Director George Lobisser made the biggest insider sale in the last 12 months. That single transaction was for US$150k worth of shares at a price of US$7.50 each. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$3.90. So it may not shed much light on insider confidence at current levels. George Lobisser was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid US$70k for 16.80k shares. But they sold 20.00k for US$150k. You can see a visual depiction of insider transactions over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:AGFS Insider Trading December 20th 18
NasdaqGS:AGFS Insider Trading December 20th 18

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.

AgroFresh Solutions Insiders Bought Stock Recently

It’s good to see that AgroFresh Solutions insiders have made notable investments in the company’s shares. Overall, 2 insiders shelled out US$59k for shares in the company — and none sold. That shows some optimism about the company’s future.

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. We usually like to see fairly high levels of insider ownership. AgroFresh Solutions insiders own 4.7% of the company, currently worth about US$9.3m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At AgroFresh Solutions Tell Us?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn’t so positive. The transactions over the last year don’t give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.

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