This Insider Has Just Sold Shares In Avanos Medical

We'd be surprised if Avanos Medical, Inc. (NYSE:AVNS) shareholders haven't noticed that an insider, Kerr Holbrook, recently sold US$165k worth of stock at US$11.00 per share. That sale was 15% of their holding, so it does make us raise an eyebrow.

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Avanos Medical Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Chairman Gary Blackford for US$659k worth of shares, at about US$11.00 per share. That means that an insider was happy to buy shares at above the current price of US$10.89. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Gary Blackford was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Avanos Medical

Avanos Medical is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Avanos Medical

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Avanos Medical insiders own about US$11m worth of shares. That equates to 2.2% 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 Avanos Medical Tell Us?

An insider hasn't bought Avanos Medical stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Avanos Medical you should be aware of, and 1 of them is a bit unpleasant.

But note: Avanos Medical 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.

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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.