We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Apollo Endosurgery, Inc. (NASDAQ:APEN).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
The Last 12 Months Of Insider Transactions At Apollo Endosurgery
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Todd Newton bought US$88k worth of shares at a price of US$3.53 per share. That means that an insider was happy to buy shares at above the current price of US$2.86. 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. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Todd Newton was the only individual insider to buy over the year.
The chart below shows insider transactions (by 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!
Apollo Endosurgery is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Apollo Endosurgery Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of Apollo Endosurgery shares, worth about US$7.2m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Apollo Endosurgery Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Apollo Endosurgery shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Apollo Endosurgery insiders are doubting the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Apollo Endosurgery.
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, but not derivative transactions.
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