Insider Buying: The Access Innovation Holdings Limited (ASX:AIM) Co-Founder Just Bought AU$200k Worth Of Shares
Investors who take an interest in Access Innovation Holdings Limited (ASX:AIM) should definitely note that the Co-Founder, Anthony Abrahams, recently paid AU$0.80 per share to buy AU$200k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for Access Innovation Holdings
Access Innovation Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Anthony Abrahams is the biggest insider purchase of Access Innovation Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.83. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Access Innovation Holdings insiders decided to buy shares at close to current prices.
In the last twelve months Access Innovation Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. 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).
Insider Ownership of Access Innovation Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Access Innovation Holdings insiders own about AU$53m worth of shares (which is 45% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Access Innovation Holdings Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Access Innovation Holdings. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Access Innovation Holdings (1 is concerning!) and we strongly recommend you look at them before investing.
But note: Access Innovation Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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