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Insiders were net buyers of Airgain, Inc.'s (NASDAQ:AIRG ) stock during the past year. That is, insiders bought more stock than they sold.
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.
View our latest analysis for Airgain
Airgain Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board James Sims bought US$105k worth of shares at a price of US$10.50 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$8.47). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. James Sims was the only individual insider to buy shares in the last twelve months.
James Sims bought 25.61k shares over the last 12 months at an average price of US$9.47. 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 Airgain Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Airgain, over the last three months. In total, Chairman of the Board James Sims bought US$80k worth of shares in that time. But Senior Vice President of Global Product & Marketing Morad Sbahi sold shares worth US$8.7k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership of Airgain
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. Our data suggests Airgain insiders own 4.8% of the company, worth about US$4.2m. We prefer to see high levels of insider ownership.
So What Do The Airgain Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Airgain stock. 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. Every company has risks, and we've spotted 3 warning signs for Airgain (of which 1 is a bit unpleasant!) you should know about.