Yahoo Finance Independent Chairman of the Board Ralph Faison Just Bought 6.0% More Shares In Arlo Technologies, Inc. (NYSE:ARLO)
Investors who take an interest in Arlo Technologies, Inc. (NYSE:ARLO) should definitely note that the Independent Chairman of the Board, Ralph Faison, recently paid US$6.65 per share to buy US$101k worth of the stock. Although the purchase only increased their holding by 6.0%, it is still a solid purchase in our view.
Check out our latest analysis for Arlo Technologies
The Last 12 Months Of Insider Transactions At Arlo Technologies
Notably, that recent purchase by Ralph Faison is the biggest insider purchase of Arlo Technologies shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$6.89. 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.
In the last twelve months Arlo Technologies insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Arlo Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Arlo Technologies Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.9% of Arlo Technologies shares, worth about US$23m. 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 Arlo Technologies Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Arlo Technologies shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Arlo Technologies you should be aware of.
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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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.
