Acacia Research Insider Purchases Yet To Pay Off Regardless Of Recent Strength

Insiders who bought US$127.1k worth of Acacia Research Corporation (NASDAQ:ACTG) stock in the last year have seen some of their losses recouped as the stock gained 12% last week. However, total losses seen by insiders are still US$42k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

We check all companies for important risks. See what we found for Acacia Research in our free report.

The Last 12 Months Of Insider Transactions At Acacia Research

Over the last year, we can see that the biggest insider purchase was by CEO, COO Martin McNulty for US$100k worth of shares, at about US$5.42 per share. That means that an insider was happy to buy shares at above the current price of US$3.54. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 23.96k shares for US$127k. But insiders sold 15.00k shares worth US$69k. In total, Acacia Research insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Acacia Research

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Acacia Research Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Acacia Research insiders own 1.5% of the company, worth about US$4.3m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Acacia Research Insiders?

The fact that there have been no Acacia Research insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Acacia Research insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Acacia Research, you should check out this free report on analyst forecasts for the company.

But note: Acacia Research 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.