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Looking at Apiam Animal Health Limited's (ASX:AHX ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
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 Apiam Animal Health
Apiam Animal Health Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by MD & Executive Director Christopher Richards for AU$252k worth of shares, at about AU$0.85 per share. That means that even when the share price was higher than AU$0.81 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Christopher Richards was the only individual insider to buy shares in the last twelve months.
Christopher Richards bought a total of 512.17k shares over the year at an average price of AU$0.89. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Apiam Animal Health 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.
Apiam Animal Health Insiders Bought Stock Recently
We saw some Apiam Animal Health insider buying shares in the last three months. MD & Executive Director Christopher Richards bought AU$29k worth of shares in that time. However, Independent Non-Executive Director Richard Dennis netted AU$10k for sales. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Apiam Animal Health insiders own 31% of the company, worth about AU$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.