Investors who take an interest in Eagers Automotive Limited (ASX:APE) should definitely note that the Non-Executive Director, Nicholas Politis, recently paid AU$13.09 per share to buy AU$262k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 10%.
Eagers Automotive Insider Transactions Over The Last Year
In fact, the recent purchase by Non-Executive Director Nicholas Politis was not their only acquisition of Eagers Automotive shares this year. They previously made an even bigger purchase of AU$278k worth of shares at a price of AU$14.03 per share. That means that an insider was happy to buy shares at above the current price of AU$13.10. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
While Eagers Automotive insiders bought shares during the last year, they didn't sell. They paid about AU$12.52 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Eagers Automotive is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Eagers Automotive Boast High Insider Ownership?
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. Eagers Automotive insiders own about AU$329m worth of shares (which is 9.8% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Eagers Automotive Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Eagers Automotive. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Eagers Automotive (1 can't be ignored!) and we strongly recommend you look at them before investing.
Of course Eagers Automotive 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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