Executive Chair & CEO of Altus Group Michael Gordon Buys 12% More Shares
Potential Altus Group Limited (TSE:AIF) shareholders may wish to note that the Executive Chair & CEO, Michael Gordon, recently bought CA$224k worth of stock, paying CA$44.89 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 12%.
The Last 12 Months Of Insider Transactions At Altus Group
Over the last year, we can see that the biggest insider purchase was by Independent Director William Brennan for CA$2.2m worth of shares, at about CA$47.05 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$44.16). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 138.44k shares worth CA$6.5m. But insiders sold 1.90k shares worth CA$104k. In the last twelve months there was more buying than selling by Altus Group insiders. 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 the share price, individual, and the date!
Check out our latest analysis for Altus Group
Altus Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Altus Group
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Altus Group insiders own 11% of the company, currently worth about CA$160m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Altus Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Altus Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Altus Group. At Simply Wall St, we found 1 warning sign for Altus Group that deserve your attention before buying any shares.
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.