Stock Analysis

Have Insiders Been Buying Audio Pixels Holdings Limited (ASX:AKP) Shares This Year?

ASX:AKP
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Audio Pixels Holdings Limited (ASX:AKP), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

View our latest analysis for Audio Pixels Holdings

The Last 12 Months Of Insider Transactions At Audio Pixels Holdings

The insider Lau Lee made the biggest insider purchase in the last 12 months. That single transaction was for AU$2.2m worth of shares at a price of AU$17.32 each. We do like to see buying, but this purchase was made at well below the current price of AU$25.51. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Audio Pixels Holdings 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:AKP Insider Trading Volume December 5th 2020

Audio Pixels Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Audio Pixels Holdings Boast High 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 Audio Pixels Holdings insiders own 56% of the company, worth about AU$408m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Audio Pixels Holdings Insiders?

The fact that there have been no Audio Pixels Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Audio Pixels Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. Every company has risks, and we've spotted 2 warning signs for Audio Pixels Holdings you should know about.

Of course Audio Pixels Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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. 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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