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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in SKYX Platforms Corp.'s (NASDAQ:SKYX) instance, it's good news for shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for SKYX Platforms
The Last 12 Months Of Insider Transactions At SKYX Platforms
The Director Dov Shiff made the biggest insider purchase in the last 12 months. That single transaction was for US$54k worth of shares at a price of US$2.72 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.39. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While SKYX Platforms insiders bought shares during the last year, they didn't sell. The average buy price was around US$3.46. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
SKYX Platforms is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of SKYX Platforms
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that SKYX Platforms insiders own 34% of the company, worth about US$96m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At SKYX Platforms Tell Us?
The fact that there have been no SKYX Platforms insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in SKYX Platforms and we see no evidence to suggest they are worried about 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. For example, SKYX Platforms has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.