Insider Buying: Acacia Research Interim CEO Bought US$150k Of Shares \

Potential Acacia Research Corporation (NASDAQ:ACTG) shareholders may wish to note that the Interim CEO, Martin McNulty, recently bought US$150k worth of stock, paying US$3.75 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Acacia Research

Acacia Research Insider Transactions Over The Last Year

Notably, that recent purchase by Martin McNulty is the biggest insider purchase of Acacia Research shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$3.93. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Acacia Research share holders is that an insider was buying at near the current price. Martin McNulty was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Acacia Research is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.7% of Acacia Research shares, worth about US$5.1m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Acacia Research Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Acacia Research insiders are reasonably well aligned, and optimistic for the future. 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. Every company has risks, and we've spotted 1 warning sign for Acacia Research you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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