Investors who take an interest in Akoustis Technologies, Inc. (NASDAQ:AKTS) should definitely note that the Co-Chairman of the Board, Jerry Neal, recently paid US$4.25 per share to buy US$106k worth of the stock. Although the purchase only increased their holding by 3.8%, it is still a solid purchase in our view.
Akoustis Technologies Insider Transactions Over The Last Year
Notably, that recent purchase by Jerry Neal is the biggest insider purchase of Akoustis Technologies shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$4.78. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Akoustis Technologies insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 30.00k shares for US$127k. On the other hand they divested 10064 shares, for US$52k. Overall, Akoustis Technologies insiders were net buyers last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Akoustis Technologies insiders own about US$29m worth of shares. That equates to 17% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Akoustis Technologies Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Akoustis Technologies insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Akoustis Technologies has 4 warning signs we think 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.
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