Airgain Up 12%, But Some Insiders Miss Out

Airgain, Inc.'s (NASDAQ:AIRG) stock rose 12% last week, but insiders who sold US$127k worth of stock over the last year are probably in a more advantageous position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$6.26, which is higher than the current price, may have been the best decision.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Airgain

Over the last year, we can see that the biggest insider sale was by the CFO, Secretary and Principal Financial & Accounting Officer, Michael Elbaz, for US$62k worth of shares, at about US$9.09 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$3.79. So it may not shed much light on insider confidence at current levels.

Insiders in Airgain didn't buy any shares in 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!

Check out our latest analysis for Airgain

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Airgain Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Airgain. In total, insiders sold US$66k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Airgain Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Airgain insiders own 11% of the company, worth about US$4.5m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Airgain Insiders?

Insiders haven't bought Airgain stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! 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. Case in point: We've spotted 4 warning signs for Airgain you should be aware of.

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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.