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 Academies Australasia Group Limited (ASX:AKG), 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 would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Academies Australasia Group

Academies Australasia Group Insider Transactions Over The Last Year

Notably, that recent purchase by John Schlederer is the biggest insider purchase of Academies Australasia Group shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$0.10. Of course they may have changed their mind. But this suggests they are optimistic. 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 Academies Australasia Group insiders decided to buy shares at close to current prices.

In the last twelve months Academies Australasia Group insiders were buying shares, but not selling. They paid about AU$0.12 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and 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!

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

Insiders At Academies Australasia Group Have Bought Stock Recently

Over the last quarter, Academies Australasia Group insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$95k worth of shares. This could be interpreted as suggesting a positive outlook.

Does Academies Australasia Group 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. Academies Australasia Group insiders own 81% of the company, currently worth about AU$11m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Academies Australasia Group Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Academies Australasia Group. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Academies Australasia Group and we suggest you have a look.

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.