Yahoo Finance Quite a few insiders invested in Aviat Networks, Inc. (NASDAQ:AVNW) last year which is positive news for shareholders
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 Aviat Networks, Inc. (NASDAQ:AVNW), that sends out a positive message to the company's shareholders.
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.
Check out our latest analysis for Aviat Networks
The Last 12 Months Of Insider Transactions At Aviat Networks
Over the last year, we can see that the biggest insider purchase was by President Peter Smith for US$52k worth of shares, at about US$25.85 per share. We do like to see buying, but this purchase was made at well below the current price of US$31.65. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 4.05k shares for US$118k. On the other hand they divested 2.41k shares, for US$62k. In total, Aviat Networks insiders bought more than they sold over the last year. The average buy price was around US$29.08. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Aviat Networks is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Aviat Networks Boast High Insider Ownership?
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. Aviat Networks insiders own about US$14m worth of shares. That equates to 3.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Aviat Networks Insiders?
The fact that there have been no Aviat Networks insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Aviat Networks insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 1 warning sign for Aviat Networks you should be aware of.
But note: Aviat Networks may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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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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