AMMO Insiders May Regret Not Buying More, Market Cap Hits US$260m
Insiders who bought AMMO, Inc. (NASDAQ:POWW) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$27m as a result of the stock's 12% gain over the same period. Put another way, the original US$200k acquisition is now worth US$242k.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for AMMO
AMMO Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Harry Markley, sold US$127k worth of shares at a price of US$4.37 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$2.20). So it may not tell us anything about how insiders feel about the current share price.
Jared Smith purchased 110.00k shares over the year. The average price per share was US$1.82. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Of AMMO
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. It appears that AMMO insiders own 25% of the company, worth about US$65m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About AMMO Insiders?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in AMMO and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AMMO. You'd be interested to know, that we found 1 warning sign for AMMO and we suggest you have a look.
Of course AMMO may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
