Bullish Avadel Pharmaceuticals Insiders Loaded Up On US$761.7k Of Stock

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Avadel Pharmaceuticals plc's (NASDAQ:AVDL) case, it's fantastic news for shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Avadel Pharmaceuticals

Avadel Pharmaceuticals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Eric Ende for US$235k worth of shares, at about US$7.84 per share. That means that an insider was happy to buy shares at around the current price of US$8.33. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Avadel Pharmaceuticals share holders is that insiders were buying at near the current price.

Avadel Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$8.90. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Avadel Pharmaceuticals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Avadel Pharmaceuticals Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Avadel Pharmaceuticals. In total, insiders bought US$355k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership Of Avadel Pharmaceuticals

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Avadel Pharmaceuticals insiders own 1.1% of the company, worth about US$8.9m. We do generally prefer see higher levels of insider ownership.

So What Do The Avadel Pharmaceuticals Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Avadel Pharmaceuticals insiders are expecting a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Avadel Pharmaceuticals.

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.