We wouldn’t blame Avid Technology, Inc. (NASDAQ:AVID) shareholders if they were a little worried about the fact that Tom J. Cordiner, the Chief Revenue Officer & Senior VP recently netted about US$836k selling shares at an average price of US$27.90. That’s a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.
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Avid Technology Insider Transactions Over The Last Year
Notably, that recent sale by Tom J. Cordiner is the biggest insider sale of Avid Technology shares that we’ve seen in the last year. That means that an insider was selling shares at below the current price (US$28.10). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it’s only a weak signal. We note that the biggest single sale was only 13%of Tom J. Cordiner’s holding.
Avid Technology 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does Avid Technology Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Avid Technology insiders own about US$95m worth of shares. That equates to 7.8% of the company. 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 Avid Technology Insiders?
An insider sold Avid Technology shares recently, but they didn’t buy any. Looking to the last twelve months, our data doesn’t show any insider buying. On the plus side, Avid Technology makes money, and is growing profits. Insiders own shares, but we’re still pretty cautious, given the history of sales. So we’d only buy after careful consideration. 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 3 warning signs for Avid Technology you should be aware of, and 1 of them is potentially serious.
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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.