Note: Insiders of Artisan Partners Asset Management Inc. (NYSE: APAM) bought shares
We have lost count of the number of times insiders have racked up shares in a company that is improving significantly. On the flip side, we would be remiss not to mention that insider selling is known to precede tough times for a business. So before you buy or sell Artisan Partners Asset Management Inc. (NYSE: APAM), you might want to know if any insiders have bought or sold.
Are Insider Trading Important?
Most investors know that it is okay for business executives, such as directors of the board of directors, to buy and sell company stock. However, there are rules governing insider trading and certain information is required.
Insider trading is not the most important thing when it comes to investing for the long term. But logic dictates that you pay attention to whether insiders are buying or selling stocks. For example, a Harvard University study found that “insider buying generates abnormal returns of over 6% per year.”
Check out our latest review for Artisan Partners Asset Management
Artisan Partners Asset Management Insider Transactions in the Last Year
Independent director Tench Coxe made the biggest insider buy in the past 12 months. This single transaction involved $ 5.0 million in shares at a price of $ 51.06 each. This means that even when the stock price was above US $ 49.59 (the recent price), an insider wanted to buy stocks. It is very possible that they regret the purchase, but it is more likely that they are optimistic about the business. For us, it’s very important to consider the price insiders pay for stocks. It is encouraging to see an insider paid above the current price of the shares, as it suggests that he has seen value, even at higher levels. The only individual insider to buy in the past year was Tench Coxe.
You can see insider trading (by companies and individuals) over the past year illustrated in the graph below. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
There are many other companies that have insiders who buy stocks. You probably do not want to miss it free list of growing companies that insiders buy.
Insiders at Artisan Partners Asset Management recently sold shares
The past three months have seen significant insider selling at Artisan Partners Asset Management. Specifically, Executive Vice President Charles Daley gave up $ 1.0 million worth of stock during that time, and we didn’t make any purchases. Overall, that makes us a little cautious, but that’s not the end.
Does Artisan Partners’ asset management benefit from strong insider ownership?
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. I think it’s a good sign if the insiders own a significant number of shares in the company. Insiders of Artisan Partners Asset Management own about $ 138 million in shares (or 3.5% of the company). Most shareholders would be happy to see this type of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.
So what do Artisan Partners’ asset management insider trading indicate?
An insider recently sold stocks, but they haven’t bought any. On the other hand, they seem more vivid if you look at the last twelve months. And insider ownership remains quite substantial. So the recent sale is not of concern to us. So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this company faces. During our analysis, we found that Artisan Partners Asset Management has 3 warning signs and it would be unwise to ignore them.
But beware : Artisan Partners Asset Management may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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