Have Insiders Sold Avalara, Inc. (NYSE:AVLR) Shares Recently?

By
Simply Wall St
Published
March 16, 2022
NYSE:AVLR
Source: Shutterstock

We wouldn't blame Avalara, Inc. (NYSE:AVLR) shareholders if they were a little worried about the fact that Scott McFarlane, the Co-Founder recently netted about US$1.5m selling shares at an average price of US$90.73. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.2%.

See our latest analysis for Avalara

The Last 12 Months Of Insider Transactions At Avalara

Notably, that recent sale by Co-Founder Scott McFarlane was not the only time they sold Avalara shares this year. They previously made an even bigger sale of -US$2.0m worth of shares at a price of US$131 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$77.68). So it may not shed much light on insider confidence at current levels.

Insiders in Avalara didn't buy any shares in the last year. 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!

insider-trading-volume
NYSE:AVLR Insider Trading Volume March 16th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Avalara

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. Avalara insiders own 2.0% of the company, currently worth about US$135m 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.

What Might The Insider Transactions At Avalara Tell Us?

Insiders haven't bought Avalara stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing 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. For instance, we've identified 5 warning signs for Avalara (1 doesn't sit too well with us) you should be aware of.

But note: Avalara may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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