It is not uncommon to see companies perform well in the years after insiders buy shares. 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 before you buy or sell Axonics Modulation Technologies, Inc. (NASDAQ:AXNX), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
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.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
The Last 12 Months Of Insider Transactions At Axonics Modulation Technologies
The Senior VP, Michael Williamson, made the biggest insider sale in the last 12 months. That single transaction was for US$214k worth of shares at a price of US$43.00 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$25.10). So it may not shed much light on insider confidence at current levels. Michael Williamson was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$181k for 5500 shares. But they sold 10000 for US$394k. Michael Williamson ditched 10000 shares over the year. The average price per share was US$39.40. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Axonics Modulation Technologies Have Bought Stock Recently
It's good to see that Axonics Modulation Technologies insiders have made notable investments in the company's shares. We can see that CEO & Director Raymond Cohen paid US$106k for shares in the company. No-one sold. This makes one think the business has some good points.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 9.5% of Axonics Modulation Technologies shares, worth about US$68m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Axonics Modulation Technologies Insiders?
It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by Axonics Modulation Technologies insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Axonics Modulation 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.