President of Aspen Aerogels Donald Young Buys 4.3% More Shares
Investors who take an interest in Aspen Aerogels, Inc. (NYSE:ASPN) should definitely note that the President, Donald Young, recently paid US$6.83 per share to buy US$171k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 4.3%.
Check out our latest analysis for Aspen Aerogels
Aspen Aerogels Insider Transactions Over The Last Year
Notably, that recent purchase by Donald Young is the biggest insider purchase of Aspen Aerogels shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$6.89. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Aspen Aerogels share holders is that insiders were buying at near the current price.
While Aspen Aerogels insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Aspen Aerogels is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Aspen Aerogels
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. Aspen Aerogels insiders own about US$12m worth of shares. That equates to 2.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Aspen Aerogels Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Aspen Aerogels we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Aspen Aerogels and understanding these should be part of your investment process.
But note: Aspen Aerogels 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.
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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.
