Alfabs Australia Insiders Lose Out As Stock Sinks To AU$0.23
The recent 19% drop in Alfabs Australia Limited's (ASX:AAL) stock could come as a blow to insiders who purchased AU$550.5k worth of stock at an average buy price of AU$0.45 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$289.1k, which is not what they expected.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Alfabs Australia
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman William Paul Wavish bought AU$472k worth of shares at a price of AU$0.47 per share. That means that an insider was happy to buy shares at above the current price of AU$0.23. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for 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. We note that William Paul Wavish was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 1.23m shares for AU$550k. But they sold 1.00m shares for AU$400k. In total, Alfabs Australia insiders bought more than they sold over the last year. 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!
View our latest analysis for Alfabs Australia
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Alfabs Australia
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Alfabs Australia insiders own about AU$7.7m worth of shares (which is 11% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Alfabs Australia Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Alfabs Australia shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Alfabs Australia insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alfabs Australia. Every company has risks, and we've spotted 3 warning signs for Alfabs Australia (of which 1 is potentially serious!) you should know about.
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 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.