Joby Aviation, Inc. (NYSE:JOBY) insiders have a reason to boast after seeing a US$57k addition to their US$2.0m investment
Insiders who bought Joby Aviation, Inc. (NYSE:JOBY) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$790m as a result of the stock's 24% gain over the same period. As a result, their original purchase of US$2.0m worth of stock is now worth US$2.1m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Joby Aviation
The Last 12 Months Of Insider Transactions At Joby Aviation
In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board Paul Sciarra bought US$980k worth of shares at a price of US$6.32 per share. That implies that an insider found the current price of US$6.62 per share to be enticing. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Joby Aviation insiders decided to buy shares at close to current prices.
In the last twelve months Joby Aviation insiders were buying shares, but not selling. 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!
Joby Aviation 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.
Insider Ownership of Joby Aviation
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Joby Aviation insiders own 28% of the company, worth about US$1.1b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Joby Aviation Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Joby Aviation insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Joby Aviation. To that end, you should learn about the 3 warning signs we've spotted with Joby Aviation (including 1 which is significant).
Of course Joby Aviation 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.
