It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Aviat Networks, Inc. (NASDAQ:AVNW).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
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. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Aviat Networks Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Julian Singer sold US$5.3m worth of shares at a price of US$18.01 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$13.65. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders netted US$5.5m for 308.95k shares sold. In total, Aviat Networks insiders sold more than they bought over the last year. The sellers received a price of around US$17.90, on average. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$13.65). You can see a visual depiction of insider transactions (by 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!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Aviat Networks Have Sold Stock Recently
The last quarter saw substantial insider selling of Aviat Networks shares. In total, Senior Vice President of International Heinz Stumpe dumped US$82k worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.
Does Aviat Networks Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.1% of Aviat Networks shares, worth about US$6.7m, according to our data. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Do The Aviat Networks Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. Insiders own relatively few shares in the company, and when you consider the sales, we’re not particularly excited about the stock. So we’re not rushing to buy, to say the least. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Aviat Networks may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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