Insiders Enjoy US$389k Return After Buying Digital Turbine Stock

Insiders who bought Digital Turbine, Inc. (NASDAQ:APPS) in the last 12 months may probably not pay attention to the stock's recent 19% drop. Reason being, despite the recent loss, insiders original purchase value of US$573.5k is now worth US$962.8k.

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.

Digital Turbine Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Director William Stone bought US$259k worth of shares at a price of US$2.59 per share. So it's clear an insider wanted to buy, at around the current price, which is US$2.84. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Digital Turbine insiders decided to buy shares at close to current prices.

Digital Turbine insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$1.69. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share 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!

See our latest analysis for Digital Turbine

Digital Turbine 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.

Digital Turbine Insiders Bought Stock Recently

It's good to see that Digital Turbine insiders have made notable investments in the company's shares. CEO & Director William Stone spent US$259k on stock, and there wasn't any selling. This makes one think the business has some good points.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Digital Turbine insiders own about US$15m worth of shares. That equates to 4.9% 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.

So What Does This Data Suggest About Digital Turbine Insiders?

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. Insiders likely see value in Digital Turbine shares, given these transactions (along with notable insider ownership of the company). While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Digital Turbine (of which 2 are concerning!) you should know about.

Of course Digital Turbine 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.