This Insider Has Just Sold Shares In Axon Enterprise

Some Axon Enterprise, Inc. (NASDAQ:AXON) shareholders may be a little concerned to see that the President, Joshua Isner, recently sold a substantial US$6.1m worth of stock at a price of US$683 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.8%.

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The Last 12 Months Of Insider Transactions At Axon Enterprise

In the last twelve months, the biggest single sale by an insider was when the Chief Product Officer & CTO, Jeffrey Kunins, sold US$26m worth of shares at a price of US$613 per share. That means that even when the share price was below the current price of US$728, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 32% of Jeffrey Kunins's holding.

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!

Check out our latest analysis for Axon Enterprise

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Axon Enterprise insiders own 4.6% of the company, worth about US$2.6b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all 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 it is good to see that Axon Enterprise is growing earnings. 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. While it's good to be aware of 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Axon Enterprise.

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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.