Investors who take an interest in Advanced Braking Technology Limited (ASX:ABV) should definitely note that insider Keith Knowles recently paid AU$0.036 per share to buy AU$169k worth of the stock. Although the purchase only increased their holding by 7.7%, it is still a solid purchase in our view.

Check out our latest analysis for Advanced Braking Technology

The Last 12 Months Of Insider Transactions At Advanced Braking Technology

In fact, the recent purchase by insider Keith Knowles was not their only acquisition of Advanced Braking Technology shares this year. Earlier in the year, they paid AU$0.036 per share in a AU$266k purchase. So it's clear an insider wanted to buy, at around the current price, which is AU$0.038. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Advanced Braking Technology insider decided to buy shares at close to current prices. Keith Knowles was the only individual insider to buy shares in the last twelve months. We note that Keith Knowles was also the biggest seller.

Keith Knowles bought 33.13m shares over the last 12 months at an average price of AU$0.037. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Advanced Braking Technology insiders own 60% of the company, currently worth about AU$8.6m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Advanced Braking Technology Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Advanced Braking Technology. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Advanced Braking Technology has 2 warning signs and it would be unwise to ignore them.

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.

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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.