Even if it's not a huge purchase, we think it was good to see that David Slack, the Non-Executive Director of Advanced Braking Technology Limited (ASX:ABV) recently shelled out AU$88k to buy stock, at AU$0.041 per share. However, it only increased their shares held by 3.1%, and it wasn't a huge purchase by absolute value, either.
Advanced Braking Technology Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Keith Knowles for AU$169k worth of shares, at about AU$0.038 per share. That means that an insider was happy to buy shares at around the current price of AU$0.04. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Advanced Braking Technology insiders decided to buy shares at close to current prices. We note that Keith Knowles was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid AU$511k for 14.95m shares. But they sold 301.02k shares for AU$9.6k. In the last twelve months there was more buying than selling by Advanced Braking Technology insiders. The average buy price was around AU$0.034. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Advanced Braking Technology
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Advanced Braking Technology insiders own 53% of the company, worth about AU$8.0m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Advanced Braking Technology Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Advanced Braking Technology insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Advanced Braking Technology.
Of course Advanced Braking Technology 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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