Stock Analysis

Independent Director Mitchell Quain Just Bought 5.9% More Shares In AstroNova, Inc. (NASDAQ:ALOT)

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Even if it's not a huge purchase, we think it was good to see that Mitchell Quain, the Independent Director of AstroNova, Inc. (NASDAQ:ALOT) recently shelled out US$55k to buy stock, at US$13.82 per share. However, it only increased their shares held by 5.9%, and it wasn't a huge purchase by absolute value, either.

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AstroNova Insider Transactions Over The Last Year

In fact, the recent purchase by Mitchell Quain was the biggest purchase of AstroNova shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$14.04 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 AstroNova share holders is that an insider was buying at near the current price. Mitchell Quain was the only individual insider to buy during 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!

NasdaqGM:ALOT Insider Trading Volume July 2nd 2021

AstroNova is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of AstroNova

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that AstroNova insiders own about US$5.6m worth of shares (which is 5.5% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About AstroNova Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that AstroNova insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AstroNova. To that end, you should learn about the 2 warning signs we've spotted with AstroNova (including 1 which is significant).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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