Have Insiders Sold Axon Enterprise Shares Recently?

Some Axon Enterprise, Inc. (NASDAQ:AXON) shareholders may be a little concerned to see that the President, Joshua Isner, recently sold a substantial US$2.1m worth of stock at a price of US$363 per share. However, that sale only accounted for 3.7% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Axon Enterprise

Axon Enterprise Insider Transactions Over The Last Year

In fact, the recent sale by President Joshua Isner was not their only sale of Axon Enterprise shares this year. They previously made an even bigger sale of -US$14m worth of shares at a price of US$312 per share. That means that an insider was selling shares at slightly below the current price (US$385). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 22% of Joshua Isner's stake.

Insiders in Axon Enterprise didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Axon Enterprise insiders own 4.9% of the company, worth about US$1.3b. 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 Axon Enterprise Insiders?

Insiders haven't bought Axon Enterprise stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Axon Enterprise is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Axon Enterprise that deserve your attention before buying any shares.

But note: Axon Enterprise may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.