Even if it's not a huge purchase, we think it was good to see that Steven Boland, the CEO, MD & Executive Director of Acrow Formwork and Construction Services Limited (ASX:ACF) recently shelled out AU$71k to buy stock, at AU$0.49 per share. Although the purchase is not a big one, increasing their shareholding by only 3.0%, it can be interpreted as a good sign.
View our latest analysis for Acrow Formwork and Construction Services
Acrow Formwork and Construction Services Insider Transactions Over The Last Year
Notably, that recent purchase by CEO, MD & Executive Director Steven Boland was not the only time they traded Acrow Formwork and Construction Services shares this year. Earlier in the year, they sold shares at a price ofAU$0.52 per share in a -AU$75k transaction. That means that even when the share price was slightly below the current price of AU$0.53, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 3.0%of Steven Boland's holding.
Over the last year, we can see that insiders have bought 746.79k shares worth AU$369k. But insiders sold 156.91k shares worth AU$81k. In the last twelve months there was more buying than selling by Acrow Formwork and Construction Services insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Acrow Formwork and Construction Services 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.
Insider Ownership of Acrow Formwork and Construction Services
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.6% of Acrow Formwork and Construction Services shares, worth about AU$10m, according to our data. But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Acrow Formwork and Construction Services Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Acrow Formwork and Construction Services we think they are probably pretty confident of a bright future. 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. At Simply Wall St, we've found that Acrow Formwork and Construction Services has 4 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.
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.
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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.