ARC Funds Insider Confidence Rewarded, Stock Hits AU$7.4m Market Cap
Insiders who bought ARC Funds Limited (ASX:ARC) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$1.4m as a result of the stock's 24% gain over the same period. As a result, the stock they originally bought for AU$398.5k is now worth AU$455.7k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
ARC Funds Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Danny Segman for AU$250k worth of shares, at about AU$0.10 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.12. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While ARC Funds 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for ARC Funds
ARC Funds is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Have ARC Funds Insiders Traded Recently?
We've only seen a tiny insider purchase valued at AU$2.8k, in the last three months. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. ARC Funds insiders own about AU$2.1m worth of shares. That equates to 28% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About ARC Funds Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in ARC Funds and their transactions don't cause us concern. 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. To that end, you should learn about the 5 warning signs we've spotted with ARC Funds (including 4 which are a bit concerning).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.
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.