Some Axon Enterprise, Inc. (NASDAQ:AXON) shareholders may be a little concerned to see that the Independent Director, Mark Kroll, recently sold a substantial US$525k worth of stock at a price of US$125 per share. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.
Axon Enterprise Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chief Revenue Officer, Joshua Isner, for US$3.5m worth of shares, at about US$152 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$133. So it is hard to draw any strong conclusion from it.
Insiders in Axon Enterprise didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that Axon Enterprise insiders own 1.5% of the company, worth about US$127m. 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 Does This Data Suggest About Axon Enterprise Insiders?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Axon Enterprise you should be aware of.
Of course Axon Enterprise 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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