It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Arlo Technologies, Inc.’s (NYSE:ARLO) case, it’s fantastic news for shareholders.
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.
Check out our latest analysis for Arlo Technologies
The Last 12 Months Of Insider Transactions At Arlo Technologies
The Independent Director Grady Summers made the biggest insider purchase in the last 12 months. That single transaction was for US$114k worth of shares at a price of US$3.80 each. We do like to see buying, but this purchase was made at well below the current price of US$6.69. While it does suggest that insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
Arlo Technologies insiders may have bought shares in the last year, but they didn’t sell any. They paid about US$4.20 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today’s share price. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Arlo Technologies insiders own about US$27m worth of shares. That equates to 4.4% 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 Do The Arlo Technologies Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Arlo Technologies shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Arlo Technologies and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Arlo Technologies. Be aware that Arlo Technologies is showing 3 warning signs in our investment analysisand 1 of those is concerning…
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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