William Schumann Is The Independent Director of Avnet, Inc. (NASDAQ:AVT) And They Just Sold 100% Of Their Shares

Anyone interested in Avnet, Inc. (NASDAQ:AVT) should probably be aware that the Independent Director, William Schumann, recently divested US$173k worth of shares in the company, at an average price of US$38.23 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Avnet

The Last 12 Months Of Insider Transactions At Avnet

In the last twelve months, the biggest single purchase by an insider was when Independent Director Oleg Khaykin bought US$291k worth of shares at a price of US$32.28 per share. So it's clear an insider wanted to buy, at around the current price, which is US$38.49. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid US$392k for 13.02k shares. But insiders sold 4.54k shares worth US$173k. Overall, Avnet insiders were net buyers 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!

Avnet 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 Avnet

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Avnet insiders own 0.7% of the company, worth about US$26m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Avnet Insiders?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Avnet we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Avnet has 2 warning signs and it would be unwise to ignore them.

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, but not derivative transactions.

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