Even if it's not a huge purchase, we think it was good to see that Laurie Lefcourt, the Independent Non-Executive Director of Advance NanoTek Limited (ASX:ANO) recently shelled out AU$11k to buy stock, at AU$5.60 per share. Even though that isn't a massive buy, it did increase their holding by 118%, which is a arguably a good sign.
Advance NanoTek Insider Transactions Over The Last Year
MD, Company Secretary & Director Geoffrey Acton made the biggest insider purchase in the last 12 months. That single transaction was for AU$270k worth of shares at a price of AU$6.00 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$5.60). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. We note that Geoffrey Acton was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 345678 shares for AU$963k. But they sold 45000 for AU$221k. In the last twelve months there was more buying than selling by Advance NanoTek insiders. They paid about AU$2.79 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Advance NanoTek is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Advance NanoTek insiders own about AU$206m worth of shares (which is 58% 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 Do The Advance NanoTek Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Advance NanoTek insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! Along with insider transactions, I recommend checking if Advance NanoTek is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course Advance NanoTek 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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.