Whilst it may not be a huge deal, we thought it was good to see that the Ascent Industries Co. (NASDAQ:ACNT) President & CEO, J. Kitchen, recently bought US$55k worth of stock, for US$11.99 per share. However, it only increased their shares held by 9.0%, and it wasn't a huge purchase by absolute value, either.
Ascent Industries Insider Transactions Over The Last Year
Notably, that recent purchase by President & CEO J. Kitchen was not the only time they bought Ascent Industries shares this year. They previously made an even bigger purchase of US$96k worth of shares at a price of US$8.61 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.76. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Ascent Industries insiders bought shares during the last year, they didn't sell. The average buy price was around US$9.50. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Ascent Industries is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Ascent Industries Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Ascent Industries insiders own about US$21m worth of shares. That equates to 18% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Ascent Industries Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Ascent Industries shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ascent Industries. For example - Ascent Industries has 1 warning sign we think you should be aware of.
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.
