Nasdaq
华尔街日报Aeris Environmental Up 12%, Insider Buyers Are Up 34%
Aeris Environmental Ltd (ASX:AEI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a AU$1.5m addition to the company’s market value. As a result, the stock they originally bought for AU$1.61m is now worth AU$2.15m.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Aeris Environmental
The insider Bernard Stang made the biggest insider purchase in the last 12 months. That single transaction was for AU$328k worth of shares at a price of AU$0.051 each. So it's clear an insider wanted to buy, at around the current price, which is AU$0.055. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Aeris Environmental share holders is that insiders were buying at near the current price. We note that Bernard Stang was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid AU$1.6m for 39.17m shares. On the other hand they divested 2.50m shares, for AU$75k. In total, Aeris Environmental insiders bought more than they sold over the last year. The average buy price was around AU$0.041. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Aeris Environmental
Aeris Environmental 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 Aeris Environmental
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. Aeris Environmental insiders own about AU$5.5m worth of shares (which is 41% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Aeris Environmental Tell Us?
It doesn't really mean much that no insider has traded Aeris Environmental shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Aeris Environmental insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Aeris Environmental is showing 5 warning signs in our investment analysis, and 4 of those are a bit concerning...
But note: Aeris Environmental may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.