Trade Alert: Maureen O'Connell At Acacia Research Corporation (NASDAQ:ACTG), Has Just Spent US$94k Buying 22% More Shares

Whilst it may not be a huge deal, we thought it was good to see that Maureen O'Connell, who is a company insider, recently bought US$94k worth of stock, for US$3.78 per share. That purchase might not be huge but it did increase their holding by 22%.

Check out our latest analysis for Acacia Research

The Last 12 Months Of Insider Transactions At Acacia Research

Notably, that recent purchase by Maureen O'Connell is the biggest insider purchase of Acacia Research shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$3.82. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider bought shares at close to current prices. Maureen O'Connell 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Acacia Research is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$2.7m worth of Acacia Research stock, about 1.4% of the company. We consider this fairly low insider ownership.

So What Do The Acacia Research Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Acacia Research stock. 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, Acacia Research has 2 warning signs (and 1 which is significant) we think you should know about.

Of course Acacia Research may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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