Insiders who bought The Artisanal Spirits Company plc (LON:ART) stock in the last 12 months recover some losses, but still down UK£18k

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Insiders who bought The Artisanal Spirits Company plc (LON:ART) stock in the last 12 months recover some losses, but still down UK£18k

Some of the losses seen by insiders who bought British £368k The Artisanal Spirits Company plc (LON:ART) shares over the past year have recovered after the stock rose 13% in the past week. However, the total losses seen by insiders are still UK £18k, but since the time of purchase.

While we don’t think shareholders should simply follow insider trading, logic dictates that you should pay some attention to whether insiders are buying or selling shares.

However, if you would rather see where the opportunities and risks are within ART’s operationyou can check out our analysis on the GB drinks industry.

Artisanal Spirits Insider deals over the past year

The independent non-executive chairman of the board, Mark Hunter, has made the largest insider purchase in the past 12 months. That single transaction was for UK £240,000 worth of shares at a price of £0.73 each. This means that even when the share price was higher than UK £0.71 (the recent price), an insider wanted to buy shares. Their view may have changed since then, but at least it shows that they felt optimistic at the time. In our opinion, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders bought shares at above current prices, because this indicates that they viewed the stock as good value, even at a higher price.

Artisanal Spirits insiders may have bought shares over the past year, but they haven’t sold anything. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, for how much and when, simply click on the chart below!

AIM: ART Insider trading volume September 9, 2022

There are always many stocks that insiders buy. So if it suits your style, you can check each stock one by one or you can check this out free list of companies. (Hint: insiders bought them).

Insiders at Artisanal Spirits recently bought stock

There has been some insider buying at Artisanal Spirits over the last quarter. Independent non-executive director Gavin Hewitt bought UK £15k worth of shares in that time. It’s great to see insiders only buying, not selling. But the amount invested in the last three months is not enough to put too much weight on it, as a single factor.

Do artisan spirits boast high insider ownership?

Looking at the total insider shareholdings in a company can help 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 incentivized to build the company for the long term. Artisanal Spirits insiders own shares worth around UK£14m. This is equivalent to 29% of the company. This level of insider ownership is good, but just not particularly outstanding. This certainly indicates a fair degree of alignment.

So what does this data suggest about artisanal spirits insiders?

Insider buying may have been minimal in the past three months, but there was no selling at all. The net investment is not enough to encourage us much. On a brighter note, the deals over the past year have been encouraging. Overall, we see nothing to suggest that Artisanal Spirits insiders doubt the company, and they do own shares. In addition to knowing about insider dealings going on, it is beneficial to identify the risks Artisanal Spirits faces. You will be interested to know, that we found 2 Warning Signs for Artisanal Spirits and we suggest you take a look.

Natural, you may find a fantastic investment by looking elsewhere. So check this out 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 disposals, but not derivative transactions.

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 is not a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any listed stocks.

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