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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Digital Turbine, Inc. (NASDAQ:APPS), that sends out a positive message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Digital Turbine Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO & Director, William Stone, for US$950k worth of shares, at about US$46.87 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$25.74. So it may not shed much light on insider confidence at current levels. William Stone was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$1.1m for 26.50k shares. But they sold 20.27k shares for US$950k. In the last twelve months there was more buying than selling by Digital Turbine insiders. Their average price was about US$39.64. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insiders at Digital Turbine Have Sold Stock Recently
We've seen more insider selling than insider buying at Digital Turbine recently. In that time, CEO & Director William Stone dumped US$950k worth of shares. On the other hand we note insiders bought US$512k worth of shares. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.
Insider Ownership of Digital Turbine
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 3.2% of Digital Turbine shares, worth about US$81m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Digital Turbine Tell Us?
Unfortunately, there has been more insider selling of Digital Turbine stock, than buying, in the last three months. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Digital Turbine has 6 warning signs (and 1 which is a bit concerning) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.