Favourable Signals For AquaBounty Technologies: Numerous Insiders Acquired Stock \
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in AquaBounty Technologies, Inc.'s (NASDAQ:AQB) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for AquaBounty Technologies
The Last 12 Months Of Insider Transactions At AquaBounty Technologies
The Independent Director Erin Sharp made the biggest insider purchase in the last 12 months. That single transaction was for US$101k worth of shares at a price of US$0.77 each. That means that an insider was happy to buy shares at above the current price of US$0.50. 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. 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.
In the last twelve months AquaBounty Technologies insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
AquaBounty Technologies 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 AquaBounty Technologies
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 19% of AquaBounty Technologies shares, worth about US$6.7m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At AquaBounty Technologies Tell Us?
The fact that there have been no AquaBounty Technologies insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in AquaBounty Technologies and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AquaBounty Technologies. For example, AquaBounty Technologies has 5 warning signs (and 2 which are a bit unpleasant) we think you should know about.
But note: AquaBounty Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.
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