Insider Spends US$1.0m Buying More Shares In Aurora Innovation

Those following along with Aurora Innovation, Inc. (NASDAQ:AUR) will no doubt be intrigued by the recent purchase of shares by Christopher Urmson, Co-Founder of the company, who spent a stonking US$1.0m on stock at an average price of US$3.88. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 4.7%.

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The Last 12 Months Of Insider Transactions At Aurora Innovation

In fact, the recent purchase by Christopher Urmson was the biggest purchase of Aurora Innovation shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$4.05. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Aurora Innovation share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 420.34k shares for US$2.0m. But insiders sold 96.10k shares worth US$542k. In the last twelve months there was more buying than selling by Aurora Innovation insiders. They paid about US$4.73 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Aurora Innovation

Aurora Innovation 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.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Aurora Innovation insiders own 12% of the company, worth about US$965m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Aurora Innovation 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. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Aurora Innovation. That's what I like to see! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Aurora Innovation that deserve your attention before buying any shares.

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.