Insider Buyers Lose US$31k As Alphawave IP Group Sheds UK£285m

Insiders who bought US$176.2k worth of Alphawave IP Group plc's (LON:AWE) stock at an average buy price of US$1.25 over the last year may be disappointed by the recent 27% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$144.9k, which is not great.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Alphawave IP Group

The Last 12 Months Of Insider Transactions At Alphawave IP Group

Over the last year, we can see that the biggest insider purchase was by CFO, COO & Director Rahul Mathur for UK£117k worth of shares, at about UK£1.17 per share. That means that even when the share price was higher than UK£1.03 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Alphawave IP Group 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Alphawave IP Group

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. We usually like to see fairly high levels of insider ownership. Alphawave IP Group insiders own 44% of the company, currently worth about UK£342m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Alphawave IP Group Tell Us?

It doesn't really mean much that no insider has traded Alphawave IP Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Alphawave IP Group insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that Alphawave IP Group is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...

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 of direct interests only, but not derivative transactions or indirect interests.

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