Don't Ignore The Insider Selling In Aviat Networks
We'd be surprised if Aviat Networks, Inc. (NASDAQ:AVNW) shareholders haven't noticed that the President, Peter Smith, recently sold US$281k worth of stock at US$19.69 per share. However, the silver lining is that the sale only reduced their total holding by 3.7%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Aviat Networks
In fact, the recent sale by Peter Smith was the biggest sale of Aviat Networks shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$19.25. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year Aviat Networks insiders didn't buy any company stock. 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!
See our latest analysis for Aviat Networks
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Insider Ownership Of Aviat Networks
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Aviat Networks insiders own about US$11m worth of shares. That equates to 4.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Aviat Networks Tell Us?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Aviat Networks is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Aviat Networks you should know about.
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 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.