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Don't Ignore The Fact That This Insider Just Sold Some Shares In Audioboom Group plc (LON:BOOM)

Simply Wall St

Anyone interested in Audioboom Group plc (LON:BOOM) should probably be aware that a company insider, Rodger Sargent, recently divested UK£130k worth of shares in the company, at an average price of UK£2.70 each. The eyebrow raising move amounted to a reduction of 16% in their holding.

Check out our latest analysis for Audioboom Group

The Last 12 Months Of Insider Transactions At Audioboom Group

In the last twelve months, the biggest single purchase by an insider was when insider David Evans bought UK£130k worth of shares at a price of UK£2.70 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£2.48). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

Happily, we note that in the last year insiders paid UK£272k for 119.93k shares. But insiders sold 48000 shares worth UK£130k. In total, Audioboom Group insiders bought more than they sold over the last year. The average buy price was around UK£2.26. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

AIM:BOOM Recent Insider Trading, February 22nd 2020

Audioboom Group 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 Audioboom Group

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Audioboom Group insiders own about UK£4.5m worth of shares (which is 13% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Audioboom Group Insider Transactions Indicate?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Audioboom Group insiders bought more shares in the company. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.