Bullish insiders at AvePoint, Inc. (NASDAQ:AVPT) loaded up on US$3.4m of stock earlier this year
Over the last year, a good number of insiders have significantly increased their holdings in AvePoint, Inc. (NASDAQ:AVPT). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for AvePoint
The Last 12 Months Of Insider Transactions At AvePoint
Over the last year, we can see that the biggest insider purchase was by Independent Director Chi On Ho for US$2.0m worth of shares, at about US$10.00 per share. That means that even when the share price was higher than US$5.74 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 350.00k shares worth US$3.4m. But insiders sold 67.00k shares worth US$450k. In the last twelve months there was more buying than selling by AvePoint insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
AvePoint is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of AvePoint
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. AvePoint insiders own about US$375m worth of shares (which is 36% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At AvePoint Tell Us?
The fact that there have been no AvePoint insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like AvePoint insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that AvePoint is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...
Of course AvePoint 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.
