Yahoo Finance Insiders may be rethinking their US$541k ACCO Brands Corporation (NYSE:ACCO) investment now that the company has lost US$59m in value
Insiders who bought US$541k worth of ACCO Brands Corporation's (NYSE:ACCO) stock at an average buy price of US$8.84 over the last year may be disappointed by the recent 5.9% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$412k, which is not what they expected.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for ACCO Brands
ACCO Brands Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Ronald Lombardi bought US$531k worth of shares at a price of US$8.85 per share. That means that an insider was happy to buy shares at above the current price of US$6.73. 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While ACCO Brands insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does ACCO Brands Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. ACCO Brands insiders own about US$25m worth of shares. That equates to 3.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The ACCO Brands Insider Transactions Indicate?
It doesn't really mean much that no insider has traded ACCO Brands shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in ACCO Brands and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ACCO Brands. Every company has risks, and we've spotted 2 warning signs for ACCO Brands (of which 1 can't be ignored!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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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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