Insider Stock Buying Reaches US$527.5k On Avid Bioservices
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Avid Bioservices, Inc.'s (NASDAQ:CDMO) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Avid Bioservices
Avid Bioservices Insider Transactions Over The Last Year
The Director Richard Hancock made the biggest insider purchase in the last 12 months. That single transaction was for US$202k worth of shares at a price of US$5.21 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$6.76. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 81.80k shares for US$527k. On the other hand they divested 22.07k shares, for US$412k. In total, Avid Bioservices insiders bought more than they sold over the last year. They paid about US$6.45 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. 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!
Avid Bioservices is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Avid Bioservices Insiders Bought Stock Recently
It's good to see that Avid Bioservices insiders have made notable investments in the company's shares. We can see that Director Richard Hancock paid US$337k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Avid Bioservices
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Avid Bioservices insiders own 0.9% of the company, worth about US$3.8m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Avid Bioservices Tell Us?
The recent insider purchase is heartening. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Avid Bioservices stock. 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. You'd be interested to know, that we found 1 warning sign for Avid Bioservices and we suggest you have a look.
But note: Avid Bioservices 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
