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AMA Group Insiders Added AU$1.92m Of Stock To Their Holdings

Simply Wall St

Published January 02, 2024

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In the last year, multiple insiders have substantially increased their holdings of AMA Group Limited (ASX:AMA) stock, indicating that insiders' optimism about the company's prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for AMA Group

AMA Group Insider Transactions Over The Last Year

The Independent Non-Executive Director Simon Moore made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.0m worth of shares at a price of AU$0.075 each. So it's clear an insider wanted to buy, at around the current price, which is AU$0.083. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for AMA Group share holders is that insiders were buying at near the current price.

AMA Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ASX:AMA Insider Trading Volume January 2nd 2024

AMA Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At AMA Group Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at AMA Group. Not only was there no selling that we can see, but they collectively bought AU$362k worth of shares. This could be interpreted as suggesting a positive outlook.

Does AMA Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that AMA Group insiders own about AU$8.7m worth of shares (which is 6.9% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.