Whilst it may not be a huge deal, we thought it was good to see that the AMERCO (NASDAQ:UHAL) Independent Director, Karl Schmidt, recently bought US$94k worth of stock, for US$472 per share. However, it only increased their shares held by 8.7%, and it wasn’t a huge purchase by absolute value, either.

View our latest analysis for AMERCO

The Last 12 Months Of Insider Transactions At AMERCO

Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Edward Shoen for US$11m worth of shares, at about US$721 per share. That means that an insider was happy to buy shares at above the current price of US$474. 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 if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. We note that Edward Shoen was both the biggest buyer and the biggest seller.

Over the last year, we can see that insiders have bought 14.96k shares worth US$11m. On the other hand they divested 15.00k shares, for US$11m. All up, insiders sold more shares in AMERCO than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of AMERCO

Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. AMERCO insiders own 6.7% of the company, currently worth about US$626m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About AMERCO Insiders?

It’s certainly positive to see the recent insider purchase. But we can’t say the same for the transactions over the last 12 months. The recent buying by an insider , along with high insider ownership, suggest that AMERCO insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. In terms of investment risks, we’ve identified 2 warning signs with AMERCO and understanding them should be part of your investment process.

But note: AMERCO 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, 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.