Australian Unity Office Fund (ASX:AOF) insider increased stake 109% in previous year

To look at Australian Unity Office Fund (ASX:AOF) insider trading over the past year, we can see that insiders were net buyers. That is, there were more shares bought by insiders than shares sold.

Although we would never suggest that investors base their decisions solely on what a company’s directors have done, logic dictates that you pay attention to whether insiders are buying or selling shares.

Check out our latest analysis for Australian Unity Office Fund

Australian Unity Office Fund Insider Trading in the Last Year

Over the past year, we can see that the largest insider buy was made by insider Sam Tarascio for AU$156,000 of shares, at around AU$2.40 per share. This means that an insider was happy to buy shares above the current price of AU$2.17. It is very possible that they regret the purchase, but it is more likely that they are optimistic about the company. We always take careful note of the price paid by insiders when buying stocks. It is encouraging to see an insider paid above the current stock price, as it suggests that they have perceived value even at higher levels. Sam Tarascio was the only individual insider to buy in the past year.

Sam Tarascio bought 69.28k shares over the past 12 months at an average price of AU$2.39. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!

volume-of-insider-trading

There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).

Insider ownership of Australian Unity Office Fund

Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the business for the long term. Based on our data, insiders of the Australian Unity Office Fund own about 0.9% of the shares, worth about A$3.2 million. However, insiders may have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

What could insider trading at the Australian Unity Office Fund tell us?

There have been no insider trades in the last three months – that’s not saying much. However, our analysis of transactions over the past year is encouraging. We would like to see larger individual holdings. However, we see nothing to suggest that insiders at the Australian Unity Office Fund doubt the company. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. In terms of investment risks, we have identified 2 warning signs with Australian Unity Office Fund and understanding them should be part of your investment process.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Jose C. Birney