CFO & Treasurer of Amplitude Picks Up 12% More Stock

Potential Amplitude, Inc. (NASDAQ:AMPL) shareholders may wish to note that the CFO & Treasurer, Andrew Casey, recently bought US$300k worth of stock, paying US$9.99 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 12%.

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Amplitude Insider Transactions Over The Last Year

Notably, that recent purchase by Andrew Casey is the biggest insider purchase of Amplitude shares that we've seen in the last year. That implies that an insider found the current price of US$10.73 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider bought shares at close to current prices. Andrew Casey was the only individual insider to buy during the last year.

Andrew Casey bought 51.00k shares over the last 12 months at an average price of US$10.58. 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!

Check out our latest analysis for Amplitude

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Amplitude 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. Amplitude insiders own 18% of the company, currently worth about US$264m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Amplitude Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Amplitude insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Amplitude. You'd be interested to know, that we found 1 warning sign for Amplitude and we suggest you have a look.

Of course Amplitude 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.