Insiders Could Have Profited By Holding onto Audinate Group Shares Despite 12% Drop

Even though Audinate Group Limited (ASX:AD8) has fallen by 12% over the past week , insiders who sold AU$4.6m worth of stock over the past year have had less luck. The average selling price of AU$21.02 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

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.

View our latest analysis for Audinate Group

The Last 12 Months Of Insider Transactions At Audinate Group

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Chairman, David Krall, for AU$2.1m worth of shares, at about AU$22.34 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$7.80). So it is hard to draw any strong conclusion from it.

Insiders in Audinate Group didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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).

Insider Ownership Of Audinate Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.5% of Audinate Group shares, worth about AU$29m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Audinate Group Insiders?

It doesn't really mean much that no insider has traded Audinate Group shares in the last quarter. Still, the insider transactions at Audinate Group in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in Audinate Group, you should check out this free report on analyst forecasts for the company.

Of course Audinate Group 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 of direct interests only, but not derivative transactions or indirect interests.

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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.