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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Apollo Endosurgery, Inc. (NASDAQ:APEN).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Apollo Endosurgery Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Director Matthew Crawford bought US$2.0m worth of shares at a price of US$5.50 per share. That means that an insider was happy to buy shares at above the current price. It's very possible they regret the purchase, but it's more likely they are bullish about the company. That purchase may suggest an expectation of positive returns over the long term.
Happily, we note that in the last year insiders bought 440.77k shares for a total of US$2.4m. In the last twelve months there was more buying than selling by Apollo Endosurgery insiders. Their average price was about US$5.50. This is nice to see since it implies that insiders might see value around current prices (around US$3.52). You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Apollo Endosurgery Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Apollo Endosurgery insiders own about US$8.9m worth of shares (which is 11% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Apollo Endosurgery Tell Us?
It doesn't really mean much that no insider has traded Apollo Endosurgery shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Apollo Endosurgery stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Apollo Endosurgery.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.