Investors who are interested in it Agrimin Limited (ASX:AMN) it is important to note that independent non-executive chairman Richard Seville recently paid AU$0.15 per share to buy AU$292,000 worth of the stock. We think that’s a good sign, especially since the purchase increased their stake by 350%.
Check out our latest analysis for Agrimin
Agrimin insider transactions in the last year
Notably, this latest purchase by Richard Seville is the largest insider purchase of Agrimin shares that we have seen in the last year. Even though the purchase was made at a significantly lower price than the current price (AU$0.21), we still consider insider buying to be positive. While this suggests insiders believe the stock is undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
While Agrimin insiders bought shares last year, they didn’t sell them. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the graphic below you can see the exact details of each insider transaction!
Agrimin isn’t the only stock that insiders are buying. For those who like to find successful investments The free A list of growing companies with recent insider purchases might be just the ticket.
Insider ownership of Agrimin
I like to look at how many shares insiders own in a company to get an idea of how aligned they are with insiders. I think it’s a good sign if insiders own a significant number of shares in the company. According to our data, Agrimin insiders own about AU$9.3m worth of shares (that’s 14% of the company). However, they may have an indirect interest through a corporate structure that we have not yet identified. While they’re better than nothing, we’re not overly impressed with these stocks.
So what does this data say about Agrimin Insiders?
It’s definitely positive to see recent insider buying. We also draw confidence from the longer-term picture of insider transactions. On the other hand, the company made a loss last year, which makes us a bit cautious. Even if the overall insider ownership percentage is below what we would like to see, the history of transactions suggests that Agrimin insiders are reasonably well aligned and optimistic about the future. So these insider transactions can help us form a thesis about the stock, but it’s also worth knowing the risks this company faces. Our analysis shows 4 warning signs for Agrimin (1 is a bit worrying!) and we strongly recommend you take a look at these before investing.
Naturally Agrimin may not be the best stock to buy. Maybe you would like to see this free Collection of high quality companies.
Insiders within the meaning of this article are persons who report their transactions to the relevant supervisory authority. We currently only consider open market transactions and private dispositions of direct holdings, but not derivative transactions or indirect holdings.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute 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 focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.