Insider Buying: The Applied Blockchain, Inc. (NASDAQ:APLD) Independent Director Just Bought 16% More Shares

Investors who take an interest in Applied Blockchain, Inc. (NASDAQ:APLD) should definitely note that the Independent Director, Virginia Moore, recently paid US$2.29 per share to buy US$115k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.

See our latest analysis for Applied Blockchain

The Last 12 Months Of Insider Transactions At Applied Blockchain

Notably, that recent purchase by Virginia Moore is the biggest insider purchase of Applied Blockchain shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.65. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

Applied Blockchain is not the only stock insiders are buying. So take a peek at this free list of growing companies with 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Applied Blockchain insiders own 11% of the company, worth about US$39m. 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 Applied Blockchain Tell Us?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Applied Blockchain insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Applied Blockchain.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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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.