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In the last year, many Axon Enterprise, Inc. (NASDAQ:AXON) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Axon Enterprise
The Last 12 Months Of Insider Transactions At Axon Enterprise
Over the last year, we can see that the biggest insider sale was by the Chief Product Officer & CTO, Jeffrey Kunins, for US$26m worth of shares, at about US$613 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$613. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 32% of Jeffrey Kunins's stake.
In the last year Axon Enterprise insiders didn't buy any company stock. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insiders At Axon Enterprise Have Sold Stock Recently
The last three months saw significant insider selling at Axon Enterprise. Specifically, insiders ditched US$49m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership
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. It's great to see that Axon Enterprise insiders own 4.7% of the company, worth about US$2.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.