Insider Buying: The Federal Agricultural Mortgage Corporation (NYSE:AGM) Independent Director Just Bought 23% More Shares

Potential Federal Agricultural Mortgage Corporation (NYSE:AGM) shareholders may wish to note that the Independent Director, Robert Sexton, recently bought US$250k worth of stock, paying US$125 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 23%.

Check out our latest analysis for Federal Agricultural Mortgage

Federal Agricultural Mortgage Insider Transactions Over The Last Year

Notably, that recent purchase by Robert Sexton is the biggest insider purchase of Federal Agricultural Mortgage shares that we've seen in the last year. That implies that an insider found the current price of US$126 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid US$353k for 3.00k shares. But insiders sold 2.65k shares worth US$327k. In the last twelve months there was more buying than selling by Federal Agricultural Mortgage insiders. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Federal Agricultural Mortgage insiders own 1.3% of the company, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Federal Agricultural Mortgage Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Federal Agricultural Mortgage we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Federal Agricultural Mortgage. In terms of investment risks, we've identified 2 warning signs with Federal Agricultural Mortgage and understanding them should be part of your investment process.

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, but not derivative transactions.

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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.

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