Potential Phibro Animal Health Corporation (NASDAQ:PAHC) shareholders may wish to note that the Independent Non-Executive Director, E. Corcoran, recently bought US$100k worth of stock, paying US$20.02 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 25%.
Phibro Animal Health Insider Transactions Over The Last Year
In fact, the recent purchase by E. Corcoran was the biggest purchase of Phibro Animal Health shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$19.46 (the recent price), an insider wanted to purchase shares. 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 always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was E. Corcoran.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Phibro Animal Health
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 Phibro Animal Health insiders own 50% of the company, worth about US$395m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Phibro Animal Health Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Phibro Animal Health. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Phibro Animal Health. At Simply Wall St, we've found that Phibro Animal Health has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.
But note: Phibro Animal Health may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.