Favourable Signals For Acacia Research: Numerous Insiders Acquired Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Acacia Research Corporation (NASDAQ:ACTG), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Acacia Research
Acacia Research Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Interim CEO Martin McNulty for US$150k worth of shares, at about US$3.75 per share. That means that an insider was happy to buy shares at above the current price of US$3.68. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 52.50k shares for US$200k. On the other hand they divested 12.50k shares, for US$50k. In the last twelve months there was more buying than selling by Acacia Research 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!
Acacia Research is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Acacia Research insiders own 1.6% of the company, worth about US$5.6m. We do generally prefer see higher levels of insider ownership.
So What Do The Acacia Research Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Acacia Research shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Acacia Research insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Acacia Research. Every company has risks, and we've spotted 1 warning sign for Acacia Research you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
