Amprius Technologies Insiders Selling US$1.2m In Stock Relieved As Market Cap Slides To US$332m

Insiders seem to have made the most of their holdings by selling US$1.2m worth of Amprius Technologies, Inc. (NYSE:AMPX) stock at an average sell price of US$1.26 during the past year. The company's market valuation decreased by US$43m after the stock price dropped 12% over the past week, but insiders were spared from painful losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Amprius Technologies

Amprius Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Justin Mirro, for US$352k worth of shares, at about US$1.00 per share. That means that an insider was selling shares at slightly below the current price (US$3.00). 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. We note that the biggest single sale was only 24% of Justin Mirro's holding.

Amprius Technologies insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Amprius Technologies better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Amprius Technologies

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 appears that Amprius Technologies insiders own 4.6% of the company, worth about US$15m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Amprius Technologies Insider Transactions Indicate?

The fact that there have been no Amprius Technologies insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Amprius Technologies insiders. But we do like the fact that insiders own a fair chunk of 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. Every company has risks, and we've spotted 4 warning signs for Amprius Technologies (of which 2 are potentially serious!) you should know about.

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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