This Insider Has Just Sold Shares In AvePoint

Some AvePoint, Inc. (NASDAQ:AVPT) shareholders may be a little concerned to see that the Co-Founder, Tianyi Jiang, recently sold a substantial US$31m worth of stock at a price of US$15.21 per share. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At AvePoint

Notably, that recent sale by Tianyi Jiang is the biggest insider sale of AvePoint shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$15.28). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 13% of Tianyi Jiang's stake.

AvePoint insiders didn't buy any shares over the last year. 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 AvePoint

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. AvePoint insiders own 30% of the company, currently worth about US$977m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About AvePoint Insiders?

Insiders sold AvePoint shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. You'd be interested to know, that we found 1 warning sign for AvePoint and we suggest you have a look.

Of course AvePoint 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.