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The President of Arlington Asset Investment Corp. (NYSE:AI), J. Tonkel, Just Bought 22% More Shares

Potential Arlington Asset Investment Corp. (NYSE:AI) shareholders may wish to note that the President, J. Tonkel, recently bought US$268k worth of stock, paying US$2.68 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 22%.

See our latest analysis for Arlington Asset Investment

Arlington Asset Investment Insider Transactions Over The Last Year

Notably, that recent purchase by J. Tonkel is the biggest insider purchase of Arlington Asset Investment shares that we've seen in the last year. That means that even when the share price was higher than US$2.64 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

In the last twelve months Arlington Asset Investment insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:AI Insider Trading Volume September 25th 2020

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Arlington Asset Investment Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$1.8m worth of Arlington Asset Investment stock, about 2.0% of the company. We prefer to see high levels of insider ownership.

So What Do The Arlington Asset Investment Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. 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 Arlington Asset Investment stock. While we like knowing 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. Our analysis shows 3 warning signs for Arlington Asset Investment (1 is concerning!) and we strongly recommend you look at them before investing.

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.

This article by Simply Wall St is general in nature. 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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