AeroVironment Director Stephen Page Buys 5,000 Shares
AeroVironment (NASDAQ:AVAV) Director Stephen Page purchased 5,000 shares of the company’s stock on the open market in a transaction dated Monday, September 23rd. The stock was purchased at an average price of $22.50 per share, for a total transaction of $112,500.00. Following the transaction, the director now directly owns 7,500 shares in the company, valued at approximately $168,750. The transaction was disclosed in a legal filing with the Securities & Exchange Commission.
Unlike Arnold Fishman's purchase of 50,000 shares last April at $18/shr, this purchase by Stephen Page appears largely symbolic (he made a fortune at UTC, the $112.5k purchase price is pocket change for him).
Interestingly, the 9/6/13 Schedule 14A proxy statement says that in the 8/5/13 board meeting, AVAV instituted director & executive officer minimum stock ownership guidelines.
Using Stephen Page as an example: The minimum ownership level required of non-employee directors is 3X the value of the annual retainer, which is currently $43750/yr. Mr. Page is listed as beneficially owning 7500 shares of stock, which at the 9/6/13 closing price of $22.32/shr gives a value of $167,400, or ~4X the annual retainer (see p.30 of proxy statement for confirmation). Hence, it appears that Stephen Page is meeting these guidelines, until you realize that NONE OF THESE SHARES ARE VESTED!
If unvested shares are included in these ownership guidelines, then the guidelines are a joke, and just window-dressing. What's meaningful is VESTED shares & options.
Bluestar, I've been impressed with your contribution to this board over the years. Your "sentiment" tag for AVAV says "Strong Buy". Is this still the case, and if so, could you please share the basis for your opinion of this company's future?