Some Avaya Holdings Corp. (NYSE:AVYA) shareholders may be a little concerned to see that the President, James Chirico, recently sold a substantial US$1.1m worth of stock at a price of US$21.41 per share. However, that sale only accounted for 5.5% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Avaya Holdings
Notably, that recent sale by James Chirico is the biggest insider sale of Avaya Holdings shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$19.47. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Avaya Holdings insiders didn't buy any shares over the last year. 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!
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Does Avaya Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.7% of Avaya Holdings shares, worth about US$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Avaya Holdings Insider Transactions Indicate?
Insiders sold Avaya Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Avaya Holdings. Be aware that Avaya Holdings is showing 3 warning signs in our investment analysis, and 2 of those can't be ignored...
But note: Avaya Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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