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Whilst it may not be a huge deal, we thought it was good to see that the Assura Plc (LON:AGR) CFO, Member of Executive Board & Executive Director, Jayne Marie Cottam, recently bought UK£47k worth of stock, for UK£0.75 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 24%.
Assura Insider Transactions Over The Last Year
In fact, the recent purchase by CFO, Member of Executive Board & Executive Director Jayne Marie Cottam was not their only acquisition of Assura shares this year. Earlier in the year, they paid UK£0.80 per share in a UK£62k purchase. That means that an insider was happy to buy shares at above the current price of UK£0.76. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Assura insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Assura
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. Our data suggests Assura insiders own 0.1% of the company, worth about UK£2.3m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Assura Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Assura insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Assura. For example, Assura has 3 warning signs (and 1 which is significant) we think you should know about.
But note: Assura may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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. 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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