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The recent price decline of 20% in Akoustis Technologies, Inc.'s (NASDAQ:AKTS) stock may have disappointed insiders who bought US$750.0k worth of shares at an average price of US$0.50 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$150.0k which is not ideal.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Akoustis Technologies
The Last 12 Months Of Insider Transactions At Akoustis Technologies
The Founder Jeffrey Shealy made the biggest insider purchase in the last 12 months. That single transaction was for US$655k worth of shares at a price of US$0.50 each. That means that an insider was happy to buy shares at above the current price of US$0.10. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Akoustis Technologies insiders may have bought shares in the last year, but they didn't sell any. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Akoustis Technologies
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Akoustis Technologies insiders have about 5.0% of the stock, worth approximately US$615k. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Akoustis Technologies Insiders?
The fact that there have been no Akoustis Technologies insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Akoustis Technologies stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Akoustis Technologies. To that end, you should learn about the 4 warning signs we've spotted with Akoustis Technologies (including 2 which are significant).