Insiders were net sellers of Archer Aviation Inc.'s (NYSE:ACHR ) stock during the past year. That is, insiders sold more stock than they bought.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Archer Aviation
The Last 12 Months Of Insider Transactions At Archer Aviation
In the last twelve months, the biggest single sale by an insider was when the insider, Brett Adcock, sold US$3.7m worth of shares at a price of US$5.30 per share. That means that even when the share price was below the current price of US$6.14, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 14% of Brett Adcock's stake. The only individual insider seller over the last year was Brett Adcock.
Over the last year, we can see that insiders have bought 113.96k shares worth US$316k. On the other hand they divested 693.58k shares, for US$3.7m. 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!
I will like Archer Aviation better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Archer Aviation Insiders Are Selling The Stock
The last three months saw significant insider selling at Archer Aviation. In total, insider Brett Adcock dumped US$3.7m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Archer Aviation insiders own 26% of the company, worth about US$485m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Archer Aviation Insiders?
An insider hasn't bought Archer Aviation stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Archer Aviation. At Simply Wall St, we've found that Archer Aviation has 5 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.
But note: Archer Aviation 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 of direct interests only, but not derivative transactions or indirect interests.
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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.