Enthusiastic tech insiders signal hesitation and sell $1 million in stock

many Avid Technology Co., Ltd. (NASDAQ:AVID) insiders have unloaded shares in their company over the past year, which could be of interest to the company’s shareholders. When evaluating insider transactions, it’s usually more useful to know whether insiders are buying or selling. Because the latter is open to many interpretations. However, shareholders should look deeper if multiple insiders have been selling shares over a period of time.

While we are by no means saying that investors should make decisions solely based on the actions of a company’s directors, we believe it is perfectly logical to monitor the actions of insiders. .

Check out our latest analysis for Avid Technologies.

Insider transactions in Avid Technology over the last 12 months

In the last twelve months, the biggest sale by an insider was when Tom J. Cordiner, Chief Revenue Officer and Senior Vice President, sold US$836,000 worth of shares at a price of US$27.90 per share. So, what is clear is that the insider saw fit to sell around his current price of US$25.63. Insider selling is usually not liked, but it is more concerning when the sale occurs at a lower price. This sale took place at about the current price, so it’s not a huge concern, but it doesn’t bode well.

Avid Technology insiders didn’t buy any shares in the company in the last year. You can see a visual representation of the insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, click on the chart below.

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Insider ownership of Avid Technologies

Many investors like to see how much of a company’s shares are owned by insiders. Typically, the higher the insider ownership, the more likely it is that insiders are incentivized to build the company for the long term. Avid Technology insiders own approximately $86m worth of shares. This is equivalent to 7.7% of the company. Certainly, we’ve seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and other shareholders.

So what do Avid Technologies’ insider trading show?

The fact that there have been no insider transactions for Avid Technology lately certainly doesn’t bother us. Our analysis of Avid Technology’s insider transactions makes us cautious. But it’s good to see insiders own shares in the company. So while it’s useful to know what insiders are doing in terms of buying and selling, it’s also useful to know the risks facing a particular company. For example, Avid Technology two warning signs (and one you can’t ignore) that I think you should know about.

of course, You may find a great investment by looking elsewhere. So take a look at this free List of interesting companies.

For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently accounts for open market transactions and private dispositions, but does not account for 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 using only unbiased methodologies, and the articles are not intended as financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.