Insiders who bought AvidXchange Holdings, Inc. (NASDAQ:AVDX) stock lover the last 12 months are probably not as affected by last week’s 7.4% loss. Even after accounting for the recent loss, the US$694k worth of stock purchased by them is now worth US$739k or in other words, their investment continues to give good returns.
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.
The Last 12 Months Of Insider Transactions At AvidXchange Holdings
Over the last year, we can see that the biggest insider purchase was by Co-Founder Michael Praeger for US$494k worth of shares, at about US$7.11 per share. So it's clear an insider wanted to buy, at around the current price, which is US$7.64. Of course they may have changed their mind. But this suggests they are optimistic. 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 AvidXchange Holdings insider decided to buy shares at close to current prices. Michael Praeger was the only individual insider to buy shares in the last twelve months.
Michael Praeger bought 96.70k shares over the last 12 months at an average price of US$7.17. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
AvidXchange Holdings 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.
Does AvidXchange Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. AvidXchange Holdings insiders own 11% of the company, currently worth about US$170m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About AvidXchange Holdings Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, AvidXchange Holdings insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for AvidXchange Holdings and we suggest you have a look.
Of course AvidXchange Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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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