Yahoo Finance Did Auckland International Airport Limited (NZSE:AIA) Insiders Buy Up More Shares?
It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Auckland International Airport Limited (NZSE:AIA).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
View our latest analysis for Auckland International Airport
The Last 12 Months Of Insider Transactions At Auckland International Airport
There wasn't any very large single transaction over the last year, but we can still observe some trading.
In the last twelve months insiders purchased 64.81k shares for NZ$339k. But they sold 14.50k shares for NZ$104k. In total, Auckland International Airport insiders bought more than they sold over the last year. Their average price was about NZ$5.24. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price of NZ$7.84. 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!
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).
Are Auckland International Airport Insiders Buying Or Selling?
In the last quarter there were insider sales totalling NZ$36k. That's only a tiny bit more than the purchases, worth NZ$29k. The net selling is so small that it's hard to draw any conclusions from these recent transactions.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. 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 suggests Auckland International Airport insiders own 0.03% of the company, worth about NZ$3.8m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Auckland International Airport Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Auckland International Airport stock. 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. While conducting our analysis, we found that Auckland International Airport has 3 warning signs and it would be unwise to ignore these.
Of course Auckland International Airport 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.
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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