Potential Alfabs Australia Limited (ASX:AAL) shareholders may wish to note that the CFO, Finance Director, Peter White, recently bought AU$318k worth of stock, paying AU$0.24 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.
The Last 12 Months Of Insider Transactions At Alfabs Australia
Over the last year, we can see that the biggest insider sale was by the Non-Executive Chairman, William Paul Wavish, for AU$400k worth of shares, at about AU$0.40 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.23). So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders purchased 1.53m shares for AU$397k. But they sold 2.30m shares for AU$719k. In total, Alfabs Australia insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Alfabs Australia
I will like Alfabs Australia better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Alfabs Australia
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Alfabs Australia insiders own about AU$7.5m worth of shares (which is 11% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Alfabs Australia Insider Transactions Indicate?
We note that there's been a little more insider selling than buying, recently. But the difference isn't enough to have us worried. We're a little cautious about the insider selling at Alfabs Australia. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alfabs Australia. For example, Alfabs Australia has 5 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
But note: Alfabs Australia 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.