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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Avon Technologies Plc's (LON:AVON) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Avon Technologies
Avon Technologies Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Mark Sclater bought UK£131k worth of shares at a price of UK£7.45 per share. We do like to see buying, but this purchase was made at well below the current price of UK£12.22. 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.
Avon 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. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.4% of Avon Technologies shares, worth about UK£5.0m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Avon Technologies Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Avon Technologies shares in the last quarter. 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 Avon Technologies stock. While it's good to be aware of 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 1 warning sign for Avon Technologies you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.