Nasdaq-Listed Companies

Don't Ignore The Fact That This Insider Just Sold Some Shares In Acacia Research Corporation (NASDAQ:ACTG)

Investors may wish to note that the Chief Financial Officer of Acacia Research Corporation, Richard Rosenstein, recently netted US$53k from selling stock, receiving an average price of US$5.51. It wasn't a huge sale, but it did reduce their holding by 11%. This does not instill confidence.

Acacia Research Insider Transactions Over The Last Year

The President Alfred Tobia made the biggest insider purchase in the last 12 months. That single transaction was for US$377k worth of shares at a price of US$3.79 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$6.52. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 125.00k shares worth US$472k. But they sold 14.17k shares for US$79k. In the last twelve months there was more buying than selling by Acacia Research insiders. 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!

insider-trading-volumeNasdaqGS:ACTG Insider Trading Volume June 9th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Acacia Research insiders own about US$6.2m worth of shares (which is 1.9% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Acacia Research Tell Us?

Insiders sold Acacia Research shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. Still, insiders don't own a great deal of the stock. So we can't be sure that insiders are optimistic. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Acacia Research you should know about.

But note: Acacia Research 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, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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