Aimia Insiders Placed Bullish Bets Worth CA$1.07m
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Aimia Inc.'s (TSE:AIM) instance, it's good news for shareholders.
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.
The Last 12 Months Of Insider Transactions At Aimia
In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director Thomas Little bought CA$273k worth of shares at a price of CA$2.75 per share. That means that an insider was happy to buy shares at above the current price of CA$2.57. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.
Happily, we note that in the last year insiders paid CA$1.1m for 389.41k shares. On the other hand they divested 4.64k shares, for CA$15k. In the last twelve months there was more buying than selling by Aimia insiders. 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!
See our latest analysis for Aimia
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Aimia Insiders Bought Stock Recently
Over the last quarter, Aimia insiders have spent a meaningful amount on shares. Overall, four insiders shelled out CA$521k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Does Aimia 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. From looking at our data, insiders own CA$3.4m worth of Aimia stock, about 1.5% of the company. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Aimia Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Aimia insiders are expecting a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Aimia.
But note: Aimia 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 of direct interests only, but not derivative transactions or indirect interests.
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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.