Yahoo Finance Bullish insiders bet US$17m on Alphawave IP Group plc (LON:AWE)
Over the last year, a good number of insiders have significantly increased their holdings in Alphawave IP Group plc (LON:AWE). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
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.
View our latest analysis for Alphawave IP Group
The Last 12 Months Of Insider Transactions At Alphawave IP Group
Notably, that recent purchase by Executive Director Sehat Sutardja was not the only time they bought Alphawave IP Group shares this year. They previously made an even bigger purchase of UK£3.3m worth of shares at a price of UK£1.31 per share. That means that even when the share price was higher than UK£0.91 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Alphawave IP Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Alphawave IP Group Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Alphawave IP Group. Not only was there no selling that we can see, but they collectively bought UK£2.3m worth of shares. That shows some optimism about the company's future.
Does Alphawave IP Group Boast High Insider Ownership?
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Alphawave IP Group insiders own 59% of the company, worth about UK£373m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Alphawave IP Group Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Alphawave IP Group. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Alphawave IP Group has 2 warning signs and it would be unwise to ignore these.
Of course Alphawave IP Group 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.
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