Potential Altisource Portfolio Solutions S.A. (NASDAQ:ASPS) shareholders may wish to note that the Chief Financial Officer, Michelle Esterman, recently bought US$101k worth of stock, paying US$0.48 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 78%, potentially signalling some real optimism.
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In fact, the recent purchase by Michelle Esterman was the biggest purchase of Altisource Portfolio Solutions shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (US$0.82), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Altisource Portfolio Solutions insiders may have bought shares in the last year, but they didn't sell any. They paid about US$0.32 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Altisource Portfolio Solutions
Altisource Portfolio Solutions is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. Our data suggests Altisource Portfolio Solutions insiders own 2.6% of the company, worth about US$1.6m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Altisource Portfolio Solutions stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 5 warning signs we've spotted with Altisource Portfolio Solutions (including 4 which are potentially serious) .
Of course Altisource Portfolio Solutions may not be the best stock to buy. So you may wish to see this free collection of high quality 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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