This ASX 200 stock is down 14% since April, and a director just bought over $500k worth

An inside buyer has purchased a bigger stake in this professional services company.

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Key points

  • The ALS share price has slipped nearly 14% since posting a 52-week high in April 
  • One insider appears to have taken advantage of the sell-off, forking out more than half a million to bolster their stake in the company
  • And they're not the only director bolstering their stake this week

Stock in S&P/ASX 200 Index (ASX: XJO) analytical and testing services provider ALS Ltd (ASX: ALQ) roared to a 52-week high of $13.48 in April before coming off the gas.

It has since slumped nearly 14% to trade at $11.67 right now.

But there's a silver lining. The tumble might have brought about a buying opportunity.

That's suggested by an insider purchase that saw the ASX 200 company's chair snap up more than $500,000 worth of its stock.

An insider just sunk more than $500k into this ASX 200 stock

ALS chair Bruce Phillips has sat on the company's board for nearly eight years, heading the table for close to seven of those.

One might assume his time running the ship sees him with a good understanding of the company's strengths and weaknesses.

Thus, some market watchers are likely intrigued by a recent purchase undertaken by the director.

Phillips indirectly purchased 50,000 stocks in the ASX 200 industrials company on the market earlier this week.

He paid around $11.68 per share to do so, forking out a total of approximately $584,000.

That same day, independent non-executive director Peter Possemiers also splurged on the market. He paid nearly $20,000 to bolster his parcel of ALS shares.

That saw him buying 11,470 securities for $11.46 apiece on the market – positively a bargain compared to his previous purchase.

Possemiers joined the company's board in November last year. Soon after, he forked out close to $30,000 to buy 2,470 of the ASX 200 constituent's stocks for $12.14 apiece.

The most significant news weighing on the ALS share price in recent weeks appears to have been the company's full-year earnings.

The ASX 200 stock tumbled 4% late last month despite the company posting a 23% jump in net profit after tax (NPAT), surging above previous guidance, and a 19% increase in revenue.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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