Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Ardent Leisure Group Limited (ASX:ALG), that sends out a positive message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Ardent Leisure Group

The Last 12 Months Of Insider Transactions At Ardent Leisure Group

The Independent Non-Executive Director Carl Richmond made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$1.45 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.54). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.

In the last twelve months Ardent Leisure Group insiders were buying shares, but not selling. Their average price was about AU$1.12. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Ardent Leisure Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Ardent Leisure Group Insiders Bought Stock Recently

There was some insider buying at Ardent Leisure Group over the last quarter. Independent Non-Executive Director Randy Garfield shelled out AU$28k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Ardent Leisure Group Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Ardent Leisure Group insiders own about AU$14m worth of shares (which is 5.5% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Ardent Leisure Group Insiders?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Ardent Leisure Group and their transactions don't cause us concern. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Ardent Leisure Group 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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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