Pleasing Signs As A Number Of Insiders Buy American Vanguard Stock \
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of American Vanguard Corporation (NYSE:AVD), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for American Vanguard
The Last 12 Months Of Insider Transactions At American Vanguard
In the last twelve months, the biggest single purchase by an insider was when Independent Director Patrick Gottschalk bought US$335k worth of shares at a price of US$16.74 per share. That implies that an insider found the current price of US$17.45 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid US$485k for 27.77k shares. On the other hand they divested 5.00k shares, for US$101k. Overall, American Vanguard insiders were net buyers during the last year. 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!
American Vanguard is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At American Vanguard Have Bought Stock Recently
Over the last quarter, American Vanguard insiders have spent a meaningful amount on shares. Independent Director Patrick Gottschalk spent US$335k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Does American Vanguard Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that American Vanguard insiders own 6.7% of the company, worth about US$35m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About American Vanguard Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in American Vanguard shares, given these transactions (along with notable insider ownership of the company). 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.
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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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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