Trade Alert: The CEO of Automotive Components Accessories Division and Executive Director Of AMA Group Limited (ASX:AMA), Raymond Smith-Roberts, Has Just Spent AU$345k Buying Shares
Investors who take an interest in AMA Group Limited (ASX:AMA) should definitely note that the CEO of Automotive Components & Accessories Division and Executive Director, Raymond Smith-Roberts, recently paid AU$1.15 per share to buy AU$345k worth of the stock. Although the purchase only increased their holding by 4.9%, it is still a solid purchase in our view.
Check out our latest analysis for AMA Group
AMA Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Group CEO & Executive Director, Andrew Hopkins, for AU$16m worth of shares, at about AU$0.95 per share. That means that an insider was selling shares at slightly below the current price (AU$1.38). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 33% of Andrew Hopkins's holding. The only individual insider seller over the last year was Andrew Hopkins.
Over the last year, we can see that insiders have bought 488007 shares worth AU$565k. But insiders sold 16780425 shares worth AU$16m. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. AMA Group insiders own about AU$100m worth of shares. That equates to 10% of the company. 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 AMA Group Insiders?
It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, AMA Group insiders are reasonably well aligned, and optimistic for the future. 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.
Of course AMA Group 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
