Insiders seem to have made the most of their holdings by selling US$950k worth of Digital Turbine, Inc. (NASDAQ:APPS) stock at an average sell price of US$46.87 during the past year. The company’s market valuation decreased by US$146m after the stock price dropped 10% over the past week, but insiders were spared from painful losses.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
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Digital Turbine Insider Transactions Over The Last Year
The CEO & Director, William Stone, made the biggest insider sale in the last 12 months. That single transaction was for US$950k worth of shares at a price of US$46.87 each. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$12.63. So it may not tell us anything about how insiders feel about the current share price. William Stone was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 20.00k shares for US$724k. On the other hand they divested 20.27k shares, for US$950k. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Digital Turbine
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Digital Turbine insiders own about US$44m worth of shares. That equates to 3.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Digital Turbine Insiders?
The fact that there have been no Digital Turbine insider transactions recently certainly doesn’t bother us. We don’t take much encouragement from the transactions by Digital Turbine insiders. But it’s good to see that insiders own shares in the company. While we like knowing 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. While conducting our analysis, we found that Digital Turbine has 5 warning signs and it would be unwise to ignore these.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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