Advertisement

Trade Alert: The Non-Employee & Independent Director Of AST SpaceMobile, Inc. (NASDAQ:ASTS), Adriana Cisneros, Has Just Spent US$200k Buying 404% More Shares

Potential AST SpaceMobile, Inc. (NASDAQ:ASTS) shareholders may wish to note that the Non-Employee & Independent Director, Adriana Cisneros, recently bought US$200k worth of stock, paying US$5.50 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 404%, potentially signalling some real optimism.

Check out our latest analysis for AST SpaceMobile

The Last 12 Months Of Insider Transactions At AST SpaceMobile

Notably, that recent purchase by Adriana Cisneros is the biggest insider purchase of AST SpaceMobile shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$4.87. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Adriana Cisneros was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

AST SpaceMobile 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 AST SpaceMobile

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.9% of AST SpaceMobile shares, worth about US$20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The AST SpaceMobile Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of AST SpaceMobile we think they are probably pretty confident of a bright future. 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. When we did our research, we found 3 warning signs for AST SpaceMobile (1 is significant!) that we believe deserve your full attention.

But note: AST SpaceMobile 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.

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

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here