The Chairman & MD of Allegiance Coal Limited (ASX:AHQ), Mark Gray, Just Bought 3.3% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Allegiance Coal Limited (ASX:AHQ) Chairman & MD, Mark Gray, recently bought AU$51k worth of stock, for AU$0.061 per share. Although the purchase is not a big one, increasing their shareholding by only 3.3%, it can be interpreted as a good sign.
View our latest analysis for Allegiance Coal
The Last 12 Months Of Insider Transactions At Allegiance Coal
In fact, the recent purchase by Mark Gray was the biggest purchase of Allegiance Coal shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$0.067. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Allegiance Coal insiders decided to buy shares at close to current prices.
While Allegiance Coal insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Allegiance Coal Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Allegiance Coal insiders own 11% of the company, worth about AU$4.6m. However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
So What Do The Allegiance Coal Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Allegiance Coal insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 5 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Allegiance Coal.
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. 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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