Have AudioEye Insiders Been Selling Stock?

We'd be surprised if AudioEye, Inc. (NASDAQ:AEYE) shareholders haven't noticed that the CFO, Principal Financial Officer & Principal Accounting Officer, Kelly Georgevich, recently sold US$304k worth of stock at US$28.90 per share. The eyebrow raising move amounted to a reduction of 18% in their holding.

View our latest analysis for AudioEye

The Last 12 Months Of Insider Transactions At AudioEye

Notably, that recent sale by Kelly Georgevich is the biggest insider sale of AudioEye shares that we've seen in the last year. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$25.51. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of AudioEye shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does AudioEye Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. AudioEye insiders own about US$63m worth of shares. That equates to 20% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At AudioEye Tell Us?

An insider sold AudioEye shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AudioEye. In terms of investment risks, we've identified 3 warning signs with AudioEye and understanding these should be part of your investment process.

Of course AudioEye may not be the best stock to buy. So you may wish to see this free collection of high quality 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.