AMREP Insiders Added US$1.68m Of Stock To Their Holdings

Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of AMREP Corporation (NYSE:AXR), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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AMREP Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Rainey Lancaster for US$306k worth of shares, at about US$24.32 per share. So it's clear an insider wanted to buy, at around the current price, which is US$24.85. 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. 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. Happily, the AMREP insiders decided to buy shares at close to current prices.

In the last twelve months AMREP insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for AMREP

AMREP is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

AMREP Insiders Bought Stock Recently

Over the last quarter, AMREP insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$1.1m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of AMREP

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. It's great to see that AMREP insiders own 46% of the company, worth about US$63m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The AMREP Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about AMREP. One for the watchlist, at least! While it's good to be aware of 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. While conducting our analysis, we found that AMREP has 1 warning sign and it would be unwise to ignore it.

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 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.