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Looking at AppFolio, Inc.'s (NASDAQ:APPF ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for AppFolio
The Last 12 Months Of Insider Transactions At AppFolio
The Independent Director Alex Wolf made the biggest insider purchase in the last 12 months. That single transaction was for US$4.0m worth of shares at a price of US$155 each. Even though the purchase was made at a significantly lower price than the recent price (US$180), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Alex Wolf bought a total of 38.86k shares over the year at an average price of US$149. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
AppFolio is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does AppFolio Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. AppFolio insiders own about US$2.4b worth of shares (which is 37% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About AppFolio Insiders?
It doesn't really mean much that no insider has traded AppFolio shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like AppFolio insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. Of course, the future is what matters most. So if you are interested in AppFolio, you should check out this free report on analyst forecasts for the company.
But note: AppFolio 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.