Independent Non-Executive Director of Australian United Investment Robert Freeman Buys 82% More Shares
Investors who take an interest in Australian United Investment Company Limited (ASX:AUI) should definitely note that the Independent Non-Executive Director, Robert Freeman, recently paid AU$11.80 per share to buy AU$390k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 82%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At Australian United Investment
Notably, that recent purchase by Robert Freeman is the biggest insider purchase of Australian United Investment shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$11.96. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Australian United Investment share holders is that insiders were buying at near the current price.
Australian United Investment insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Australian United Investment
Australian United Investment is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. Australian United Investment insiders own about AU$96m worth of shares. That equates to 3.7% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Australian United Investment Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Australian United Investment insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Australian United Investment. Case in point: We've spotted 3 warning signs for Australian United Investment you should be aware of, and 1 of these shouldn't be ignored.
Of course Australian United Investment may not be the best stock to buy. So you may wish to see this free collection of high quality 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.