Insiders who bought US$393k worth of AudioEye, Inc.'s (NASDAQ:AEYE) stock at an average buy price of US$10.84 over the last year may be disappointed by the recent 14% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$192k, which is not what they expected.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for AudioEye
AudioEye Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Anthony Coelho for US$256k worth of shares, at about US$11.11 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$5.30). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 36.26k shares worth US$393k. But insiders sold 15.52k shares worth US$250k. Overall, AudioEye insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
AudioEye is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
AudioEye Insiders Bought Stock Recently
There was some insider buying at AudioEye over the last quarter. President Christopher Hundley shelled out US$21k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of AudioEye
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. Insiders own 21% of AudioEye shares, worth about US$13m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.