Potential Advanced Braking Technology Limited (ASX:ABV) shareholders may wish to note that insider Keith Knowles recently bought AU$184k worth of stock, paying AU$0.032 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 11%.
The Last 12 Months Of Insider Transactions At Advanced Braking Technology
Notably, that recent purchase by insider Keith Knowles was not the only time they bought Advanced Braking Technology shares this year. Earlier in the year, they paid AU$0.036 per share in a AU$266k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.036). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. 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 24.26m shares over the last 12 months at an average price of AU$0.037. 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!
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. We usually like to see fairly high levels of insider ownership. Advanced Braking Technology insiders own about AU$6.3m worth of shares (which is 46% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Advanced Braking Technology Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Advanced Braking Technology. That's what I like to see! While we like knowing 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. To that end, you should learn about the 3 warning signs we've spotted with Advanced Braking Technology (including 1 which doesn't sit too well with us).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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.
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