Yahoo Finance This AVITA Medical Insider Increased Their Holding By 250% Last Year
Viewing insider transactions for AVITA Medical, Inc.'s (NASDAQ:RCEL ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for AVITA Medical
The Last 12 Months Of Insider Transactions At AVITA Medical
The insider David O'Toole made the biggest insider purchase in the last 12 months. That single transaction was for US$90k worth of shares at a price of US$17.96 each. That means that even when the share price was higher than US$16.43 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. David O'Toole was the only individual insider to buy during the last year.
David O'Toole bought 16.70k shares over the last 12 months at an average price of US$14.98. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
AVITA Medical is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
AVITA Medical Insiders Are Selling The Stock
We have seen a bit of insider selling at AVITA Medical, over the last three months. In total, insiders sold US$50k worth of shares in that time. But at least we saw US$22k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Insider Ownership Of AVITA Medical
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that AVITA Medical insiders own 2.6% of the company, worth about US$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The AVITA Medical Insider Transactions Indicate?
We note that there's been a little more insider selling than buying, recently. But the difference isn't enough to have us worried. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think AVITA Medical insiders are doubting the company, and they do own shares. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for AVITA Medical.
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
