Insiders who bought US$9.3m worth of a.k.a. Brands Holding Corp.'s (NYSE:AKA) stock at an average buy price of US$10.56 over the last year may be disappointed by the recent 12% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$7.6m, which is not great.
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.
The Last 12 Months Of Insider Transactions At a.k.a. Brands Holding
In the last twelve months, the biggest single purchase by an insider was when insider Tah-nee Beard bought US$5.9m worth of shares at a price of US$11.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$8.67). 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While a.k.a. Brands Holding insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
a.k.a. Brands Holding is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at a.k.a. Brands Holding Have Bought Stock Recently
It's good to see that a.k.a. Brands Holding insiders have made notable investments in the company's shares. In total, insiders bought US$9.3m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. a.k.a. Brands Holding insiders own 19% of the company, currently worth about US$210m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At a.k.a. Brands Holding Tell Us?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about a.k.a. Brands Holding. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing a.k.a. Brands Holding. Case in point: We've spotted 1 warning sign for a.k.a. Brands Holding you should be aware of.
Of course a.k.a. Brands Holding 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.
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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.