Associated Global Partners insiders get good value for their AU$1.45 million investment

Associate Global Partners Limited (ASX:APL) insiders who bought shares over the past 12 months were handsomely rewarded last week. The stock rose 29%, resulting in a AU$1.7 million increase in the company’s market value. As a result, the shares they originally bought for AU$1.45 million are now worth AU$1.62 million.

While we would never recommend that investors base their decisions solely on the behavior of company executives, we believe it is foolish to completely ignore insider transactions.

Check out our latest analysis for Associate Global Partners

Associate Global Partners’ insider transactions in the last year

Over the last year, we found that the largest insider purchase was by insider Brett Cairns, who bought AU$746,000 worth of shares at a price of around AU$0.10 per share. Even though the purchase was made at a significantly lower price than the current price (AU$0.14), we still consider insider buying to be a positive. While this suggests that insiders think the stock is undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.

Over the last twelve months, Associate Global Partners insiders bought shares, but did not sell. Their average price was around AU$0.12. We don’t deny that it’s nice when insiders buy shares in the company. However, we note that they bought at significantly lower prices than today’s share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including share price, individual and date!

Associate Global Partners is not the only stock that insiders are buying, so take a look at these free List of companies with insider purchases that remain under the radar.

Associate Global Partners insiders recently purchased shares

In the last quarter, Associate Global Partners insiders spent a significant amount on shares. Not only were there no discernible sales, but they bought a total of AU$985,000 worth of shares. This could be interpreted as a positive outlook.

Insider ownership

Many investors like to check how much of a company is owned by insiders. I think it’s a good sign when insiders own a significant number of shares in the company. Associate Global Partners insiders own about AU$2.2 million worth of shares, representing 29% of the company. We’ve certainly seen higher insider ownership elsewhere, but these percentages are enough to indicate alignment between insiders and the other shareholders.

So what does this data say about Associate Global Partners insiders?

The recent insider purchases are certainly positive. We also take confidence from the longer-term picture of insider transactions. On the other hand, the company has been losing money over the last year, which makes us a little cautious. Since insiders also own a fairly large stake in Associate Global Partners, we think they are probably quite confident about a bright future. While it is good to know about insider ownership and transactions, we make sure to also consider the risks a stock poses before making an investment decision. At Simply Wall St, we have found that Associate Global Partners 5 warning signs (3 are a bit unpleasant!) that deserve your attention before you continue with your analysis.

If you would rather try another company – one with potentially better financials – then don’t miss this free List of interesting companies with HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

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This Simply Wall St article is of a general nature. We comment solely on historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

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