Don't Ignore The Insider Selling In Axon Enterprise

Some Axon Enterprise, Inc. (NASDAQ:AXON) shareholders may be a little concerned to see that the COO & CFO, Brittany Bagley, recently sold a substantial US$2.9m worth of stock at a price of US$485 per share. However, that sale only accounted for 9.0% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Axon Enterprise

In the last twelve months, the biggest single sale by an insider was when the President, Joshua Isner, sold US$18m worth of shares at a price of US$549 per share. So what is clear is that an insider saw fit to sell at around the current price of US$513. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Over the last year we saw more insider selling of Axon Enterprise shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Axon Enterprise

I will like Axon Enterprise better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Axon Enterprise Boast High Insider Ownership?

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. It's great to see that Axon Enterprise insiders own 4.3% of the company, worth about US$1.7b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Axon Enterprise Tell Us?

Insiders haven't bought Axon Enterprise stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Axon Enterprise.

But note: Axon Enterprise 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.