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Potential Aspen Aerogels, Inc. (NYSE:ASPN) shareholders may wish to note that the President, Donald Young, recently bought US$107k worth of stock, paying US$5.35 for each share. Although the purchase only increased their holding by 3.8%, it is still a solid purchase in our view.
Our free stock report includes 1 warning sign investors should be aware of before investing in Aspen Aerogels. Read for free now.
Aspen Aerogels Insider Transactions Over The Last Year
Notably, that recent purchase by Donald Young is the biggest insider purchase of Aspen Aerogels shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$5.94. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Aspen Aerogels insider decided to buy shares at close to current prices. Donald Young was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Aspen Aerogels
Aspen Aerogels is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Aspen Aerogels Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Aspen Aerogels insiders own 1.3% of the company, worth about US$5.7m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Aspen Aerogels Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Aspen Aerogels insiders are expecting a bright 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. Every company has risks, and we've spotted 1 warning sign for Aspen Aerogels you should know about.