Yahoo Finance Insider Buying: The Audacy, Inc. (NYSE:AUD) Chairman Just Bought 3.3% More Shares
Potential Audacy, Inc. (NYSE:AUD) shareholders may wish to note that the Chairman, David Field, recently bought US$335k worth of stock, paying US$2.88 for each share. Although the purchase only increased their holding by 3.3%, it is still a solid purchase in our view.
See our latest analysis for Audacy
The Last 12 Months Of Insider Transactions At Audacy
Over the last year, we can see that the biggest insider purchase was by Chairman Emeritus Joseph Field for US$1.2m worth of shares, at about US$3.16 per share. That means that even when the share price was higher than US$2.94 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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 insiders purchased 661.22k shares for US$2.0m. But they sold 205.68k shares for US$1.3m. Overall, Audacy insiders were net buyers during the last year. You can see the insider transactions (by companies and 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!
Audacy 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 Audacy
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. It appears that Audacy insiders own 18% of the company, worth about US$71m. 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 Do The Audacy Insider Transactions Indicate?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Audacy we think they are probably pretty confident of a bright future. 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 Audacy has 1 warning sign and it would be unwise to ignore it.
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. 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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