Quite a few insiders invested in AZZ Inc. (NYSE:AZZ) last year which is positive news for shareholders
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in AZZ Inc.'s (NYSE:AZZ) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for AZZ
AZZ Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Thomas Ferguson bought US$212k worth of shares at a price of US$42.49 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$39.55). 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. 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.
AZZ insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$37.80. 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that AZZ insiders own 2.2% of the company, worth about US$22m. 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 AZZ Insiders?
It doesn't really mean much that no insider has traded AZZ shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in AZZ and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AZZ. Case in point: We've spotted 1 warning sign for AZZ you should be aware of.
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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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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