Who Has Been Buying Axovant Gene Therapies Ltd. (NASDAQ:AXGT) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Axovant Gene Therapies Ltd. (NASDAQ:AXGT).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Axovant Gene Therapies

The Last 12 Months Of Insider Transactions At Axovant Gene Therapies

Over the last year, we can see that the biggest insider purchase was by CEO & Director Pavan Cheruvu for US$103k worth of shares, at about US$2.74 per share. That means that an insider was happy to buy shares at around the current price of US$3.14. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Axovant Gene Therapies share holders is that insiders were buying at near the current price.

While Axovant Gene Therapies insiders bought shares during the last year, they didn't sell. You can see a visual depiction of 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, simply click on the graph below!

Axovant Gene Therapies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Axovant Gene Therapies Insiders Bought Stock Recently

Over the last quarter, Axovant Gene Therapies insiders have spent a meaningful amount on shares. Overall, two insiders shelled out US$130k for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership of Axovant Gene Therapies

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From what we can see in our data, insiders own only about US$395k worth of Axovant Gene Therapies shares. But they may have an indirect interest through a corporate structure that we haven't picked up on. We might be missing something but that seems like very low insider ownership.

So What Does This Data Suggest About Axovant Gene Therapies Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Axovant Gene Therapies insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Axovant Gene Therapies (1 is a bit concerning!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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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