Yahoo Finance The Independent Chairman of Eagers Automotive Limited (ASX:APE), Timothy Boyd Crommelin, Just Bought 1.4% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Eagers Automotive Limited (ASX:APE) Independent Chairman, Timothy Boyd Crommelin, recently bought AU$53k worth of stock, for AU$8.84 per share. However, it only increased their shares held by 1.4%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Eagers Automotive
The Last 12 Months Of Insider Transactions At Eagers Automotive
In the last twelve months, the biggest single purchase by an insider was when insider Vernon Wheatley bought AU$1.0m worth of shares at a price of AU$10.14 per share. That means that even when the share price was higher than AU$8.48 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Eagers Automotive insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$8.03 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Eagers Automotive is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Eagers Automotive insiders own about AU$201m worth of shares (which is 9.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Eagers Automotive Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Eagers Automotive insiders are well aligned, and quite possibly think the share price is too low. Nice! 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. For example, Eagers Automotive has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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