Pleasing Signs As A Number Of Insiders Buy Alphawave IP Group Stock

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Alphawave IP Group plc's (LON:AWE) instance, it's good news for shareholders.

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.

View 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 Chief Financial Officer Rahul Mathur for UK£117k worth of shares, at about UK£1.17 per share. Even though the purchase was made at a significantly lower price than the recent price (UK£1.51), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid UK£176k for 140.70k shares. But they sold 48.78k shares for UK£57k. In total, Alphawave IP Group insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Alphawave IP Group Insiders Bought Stock Recently

Over the last quarter, Alphawave IP Group insiders have spent a meaningful amount on shares. Chief Financial Officer Rahul Mathur spent UK£117k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.

Insider Ownership Of Alphawave IP Group

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. Alphawave IP Group insiders own about UK£618m worth of shares (which is 56% of the company). 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 Do The Alphawave IP Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Alphawave IP Group insiders are well aligned, and quite possibly think the share price is too low. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alphawave IP Group. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Alphawave IP Group.

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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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com