Sehat Sutardja Is The Executive Director of Alphawave IP Group plc (LON:AWE) And Just Spent US$607k On Shares

By
Simply Wall St
Published
May 15, 2022
LSE:AWE
Source: Shutterstock

Those following along with Alphawave IP Group plc (LON:AWE) will no doubt be intrigued by the recent purchase of shares by Sehat Sutardja, Executive Director of the company, who spent a stonking UK£607k on stock at an average price of UK£1.21. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.6%.

Check out our latest analysis for Alphawave IP Group

Alphawave IP Group Insider Transactions Over The Last Year

Notably, that recent purchase by Sehat Sutardja is the biggest insider purchase of Alphawave IP Group shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (UK£1.47), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Alphawave IP Group insiders were buying shares, but not selling. They paid about UK£1.41 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent 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!

insider-trading-volume
LSE:AWE Insider Trading Volume May 15th 2022

Alphawave IP Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. Alphawave IP Group insiders own about UK£581m worth of shares (which is 59% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Alphawave IP Group Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Alphawave IP Group. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Alphawave IP Group and understanding these should be part of your investment process.

Of course Alphawave IP 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, but not derivative transactions.

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