Have Artivion Insiders Been Selling Stock?

Anyone interested in Artivion, Inc. (NYSE:AORT) should probably be aware that the Senior VP of Clinical Research & Chief Medical Officer, Marshall Stanton, recently divested US$307k worth of shares in the company, at an average price of US$29.13 each. On the bright side, that sale was only 9.1% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At Artivion

Over the last year, we can see that the biggest insider sale was by the Chairman, James Mackin, for US$1.2m worth of shares, at about US$27.31 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$28.91. 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. It is worth noting that this sale was only 6.0% of James Mackin's holding.

Over the last year we saw more insider selling of Artivion shares, than buying. 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!

View our latest analysis for Artivion

I will like Artivion 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

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. Artivion insiders own about US$77m worth of shares. That equates to 6.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Artivion Tell Us?

The stark truth for Artivion is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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 1 warning sign for Artivion 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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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.