Those following along with ADTRAN Holdings, Inc. (NASDAQ:ADTN) will no doubt be intrigued by the recent purchase of shares by Thomas Stanton, President of the company, who spent a stonking US$601k on stock at an average price of US$4.01. Not only is that a big swing, but it increased their holding size by 12%, which is definitely great to see.
ADTRAN Holdings Insider Transactions Over The Last Year
In fact, the recent purchase by Thomas Stanton was the biggest purchase of ADTRAN Holdings shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$4.41. Of course they may have changed their mind. But this suggests they are optimistic. 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$1.2m for 234.34k shares. On the other hand they divested 23.74k shares, for US$286k. Overall, ADTRAN Holdings insiders were net buyers during the last year. Their average price was about US$5.01. This is nice to see since it implies that insiders might see value around current prices. 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!
View our latest analysis for ADTRAN Holdings
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Insider Ownership Of ADTRAN Holdings
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. Insiders own 2.3% of ADTRAN Holdings shares, worth about US$8.2m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At ADTRAN Holdings Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on ADTRAN Holdings stock. 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 ADTRAN Holdings has 1 warning sign and it would be unwise to ignore it.
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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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