Read This Before Selling Applied UV, Inc. (NASDAQ:AUVI) Shares
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Applied UV, Inc. (NASDAQ:AUVI).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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'.
View our latest analysis for Applied UV
Applied UV Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by President & Director Max Munn for US$80k worth of shares, at about US$8.73 per share. We do like to see buying, but this purchase was made at well below the current price of US$10.74. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
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!
Applied UV 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.
Are Applied UV Insiders Buying Or Selling?
In the last quarter we saw President & Director Max Munn spend US$80k on shares. However that only slightly eclipses the sales, US$78k worth of sales. Looking at the net result, we don't think these recent trades shed much light on how insiders, as a group, are feeling about the company's prospects.
Insider Ownership of Applied UV
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Applied UV insiders own about US$57m worth of shares (which is 56% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Applied UV Tell Us?
Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Applied UV 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 Applied UV. Case in point: We've spotted 2 warning signs for Applied UV you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
