We wouldn't blame Axon Enterprise, Inc. (NASDAQ:AXON) shareholders if they were a little worried about the fact that Mark Kroll, the Independent Director recently netted about US$525k selling shares at an average price of US$125. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.
Axon Enterprise Insider Transactions Over The Last Year
The Chief Revenue Officer, Joshua Isner, made the biggest insider sale in the last 12 months. That single transaction was for US$3.5m worth of shares at a price of US$152 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$133. So it is hard to draw any strong conclusion from it.
Axon Enterprise insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. We usually like to see fairly high levels of insider ownership. It's great to see that Axon Enterprise insiders own 1.5% of the company, worth about US$127m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Axon Enterprise Tell Us?
Insiders sold Axon Enterprise shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Axon Enterprise you should be aware of.
Of course Axon Enterprise may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
This article by Simply Wall St is general in nature. 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.
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