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Insider Buying: The Altium Limited (ASX:ALU) Independent Non-Executive Chairman Just Bought US$50k Worth Of Shares

Whilst it may not be a huge deal, we thought it was good to see that the Altium Limited (ASX:ALU) Independent Non-Executive Chairman, Samuel Weiss, recently bought AU$50k worth of stock, for AU$25.01 per share. That might not be a big purchase but it only increased their holding by 0.1%, and could be interpreted as a good sign.

See our latest analysis for Altium

The Last 12 Months Of Insider Transactions At Altium

Notably, that recent purchase by Samuel Weiss is the biggest insider purchase of Altium shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$26.00. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Samuel Weiss. We note that Samuel Weiss was also the biggest seller.

Samuel Weiss purchased 3.00k shares over the year. The average price per share was AU$28.04. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:ALU Recent Insider Trading March 28th 2020
ASX:ALU Recent Insider Trading March 28th 2020

Altium 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Altium insiders own 12% of the company, worth about AU$392m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Altium Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Altium insiders think the business has merit. 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 assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Altium.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.