Investors who take an interest in Advanced Braking Technology Limited (ASX:ABV) should definitely note that insider Keith Knowles recently paid AU$0.038 per share to buy AU$191k worth of the stock. That’s a very solid buy in our book, and increased their holding by a noteworthy 17%.
Check out our latest analysis for Advanced Braking Technology
The Last 12 Months Of Insider Transactions At Advanced Braking Technology
Notably, that recent purchase by Keith Knowles is the biggest insider purchase of Advanced Braking Technology shares that we’ve seen in the last year. That means that even when the share price was higher than AU$0.035 (the recent price), an insider wanted to purchase shares. 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. To us, it’s very important to consider the price insiders pay for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Keith Knowles was the only individual insider to buy shares in the last twelve months. Notably Keith Knowles was also the biggest seller.
Keith Knowles bought a total of 24.52m shares over the year at an average price of AU$0.028. 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!
Advanced Braking Technology is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Advanced Braking Technology insiders own 39% of the company, worth about AU$5.2m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Advanced Braking Technology Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Advanced Braking Technology we think they are probably pretty confident of a bright future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. Our analysis shows 3 warning signs for Advanced Braking Technology (1 is significant!) and we strongly recommend you look at these before investing.
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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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.
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