Potential Afone S.A. (EPA:AFO) shareholders may wish to note that the Chairman & CEO, Philip Fournier, recently bought €175k worth of stock, paying €13.00 for each share. Although the purchase only increased their holding by 0.5%, it is still a solid purchase in our view.
Afone Insider Transactions Over The Last Year
Notably, that recent purchase by Philip Fournier is the biggest insider purchase of Afone shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is €13.00. 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. 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 Afone share holders is that insiders were buying at near the current price.
Afone insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Afone
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Afone insiders own about €43m worth of shares (which is 90% 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 Does This Data Suggest About Afone Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Afone. One for the watchlist, at least! Along with insider transactions, I recommend checking if Afone is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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