Shareholders may not want to ignore sales worth US $ 9.2 million made by insiders at Digital Turbine, Inc. (NASDAQ: APPS) last year.
Although it has been a great week for Digital Turbine, Inc. (NASDAQ: APPS) After the stock has gained 10%, they should view it with a grain of salt. Although prices are relatively low, insiders have chosen to sell $ 9.2 million worth of shares in the past 12 months. It could be a sign of impending weakness.
While we never suggest that investors should base their decisions solely on what the directors of a company have done, we consider it foolish to ignore insider trading altogether.
Check out our latest analysis for Digital Turbine
Insider trading on digital turbines in the past year
The largest insider sale in the past twelve months was when the independent chairman of the board, Robert Deutschman, sold $ 8.1 million of shares at a price of $ 40.64 per share. So it’s clear that an insider wanted to take money off the table, even below the current price of US $ 73.86. Generally, we find it disheartening when insiders sell below the current price, as it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we cannot be sure that this means that insiders think stocks are fully valued, so it is only a weak sign. Note that the biggest single sale was only 22% of Robert Deutschman’s stake. Notably, Robert Deutschman was also the largest buyer, having bought US $ 366,000 of shares.
Fortunately, we note that over the past year, insiders paid US $ 366,000 for 7.19,000 shares. But insiders sold 231.85,000 shares worth $ 9.2 million. In total, Digital Turbine insiders have sold more than they have bought over the past year. You can see insider trading (by companies and individuals) over the past year represented in the graph below. If you want to know exactly who sold, for how much and when, just click on the graph below!
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Digital Turbine Insiders Bought Shares Recently
It’s good to see that Digital Turbine insiders have made some notable investments in the shares of the company. In total, insiders bought US $ 327,000 worth of shares during this period, and we did not record any sales. This shows some optimism about the future of the company.
Does the digital turbine have strong insider ownership?
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. Strong insider ownership often makes company management more concerned with the interests of shareholders. Digital Turbine insiders own around $ 256 million in shares (or 3.6% of the company). I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
So what does this data suggest about digital turbine insiders?
Recent insider buying is encouraging. On the other hand, the transaction history, over the past year, is not that positive. Overall, we would prefer to see a more sustained buy from admins, but with significant insider participation and more recent buys, Digital Turbine insiders are reasonably well aligned and optimistic for the future. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Note that Digital Turbine displays 4 warning signs in our investment analysis, and 1 of them is a bit rude …
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For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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