It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in A.H. Belo Corporation (NYSE:AHC).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for A.H. Belo

The Last 12 Months Of Insider Transactions At A.H. Belo

In the last twelve months, the biggest single purchase by an insider was when Chairman Robert Decherd bought US$1.1m worth of shares at a price of US$4.00 per share. That means that an insider was happy to buy shares at above the current price of US$1.60. 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. 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 insiders purchased 308.74k shares for US$1.1m. But they sold 198.62k shares for US$794k. In the last twelve months there was more buying than selling by A.H. Belo insiders. 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!

A.H. Belo 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.

Insiders at A.H. Belo Have Bought Stock Recently

It's good to see that A.H. Belo insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$67k worth of shares. That shows some optimism about the company's future.

Insider Ownership of A.H. Belo

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. Insiders own 13% of A.H. Belo shares, worth about US$4.3m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At A.H. Belo Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on A.H. Belo stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing A.H. Belo. For instance, we've identified 3 warning signs for A.H. Belo (1 doesn't sit too well with us) you should be aware of.

Of course A.H. Belo 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.

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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