Geoffrey Glass Bought 13% More Shares In Avadel Pharmaceuticals
Potential Avadel Pharmaceuticals plc (NASDAQ:AVDL) shareholders may wish to note that the Independent Non-Executive Chairman of the Board, Geoffrey Glass, recently bought US$188k worth of stock, paying US$13.40 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 13%.
View our latest analysis for Avadel Pharmaceuticals
Avadel Pharmaceuticals Insider Transactions Over The Last Year
In fact, the recent purchase by Geoffrey Glass was the biggest purchase of Avadel Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$14.55. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Avadel Pharmaceuticals insiders decided to buy shares at close to current prices.
While Avadel Pharmaceuticals insiders bought shares during the last year, they didn't sell. The average buy price was around US$11.23. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and 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!
Avadel Pharmaceuticals 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 Avadel Pharmaceuticals
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. Insiders own 4.5% of Avadel Pharmaceuticals shares, worth about US$58m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Avadel Pharmaceuticals Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Avadel Pharmaceuticals shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Avadel Pharmaceuticals has 2 warning signs and it would be unwise to ignore them.
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.
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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.
