A number of insiders bought Acacia Research Corporation (NASDAQ:ACTG) stock last year, which is great news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Acacia Research Corporation's (NASDAQ:ACTG) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Acacia Research
The Last 12 Months Of Insider Transactions At Acacia Research
In the last twelve months, the biggest single purchase by an insider was when President Alfred Tobia bought US$377k worth of shares at a price of US$3.79 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$5.55. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 125.00k shares worth US$472k. But insiders sold 20.08k shares worth US$115k. In total, Acacia Research insiders bought more than they sold over the last year. 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!
Acacia Research 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.
Acacia Research Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Acacia Research. In total, insiders sold US$89k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Acacia Research Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Acacia Research insiders own about US$5.7m worth of shares (which is 2.1% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Acacia Research Insider Transactions Indicate?
Insiders haven't bought Acacia Research stock in the last three months, but there was some selling. But we take heart from prior transactions. But we'd like it if insiders owned more stock, overall. So overall it's hard to argue insiders are bullish. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Acacia Research. At Simply Wall St, we found 2 warning signs for Acacia Research that deserve your attention before buying any shares.
Of course Acacia Research 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.
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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