Insider Traders Lose US$108k As Advantage Solutions Drops

Simply Wall St.
13 Jan

The recent price decline of 10% in Advantage Solutions Inc.'s (NASDAQ:ADV) stock may have disappointed insiders who bought US$405.6k worth of shares at an average price of US$3.24 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$297.5k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Advantage Solutions

Advantage Solutions Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Operating Officer of Experiential Services, Andrea Young, sold US$227k worth of shares at a price of US$3.43 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$2.38. So it may not tell us anything about how insiders feel about the current share price. Andrea Young was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 125.00k shares worth US$406k. On the other hand they divested 66.00k shares, for US$227k. In the last twelve months there was more buying than selling by Advantage Solutions insiders. 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!

NasdaqGS:ADV Insider Trading Volume January 13th 2025

Advantage Solutions is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Advantage Solutions Have Sold Stock Recently

There was substantially more insider selling, than buying, of Advantage Solutions shares over the last three months. In that time, Chief Operating Officer of Experiential Services Andrea Young dumped US$227k worth of shares. On the flip side, CEO & Director David Peacock spent US$115k on purchasing shares. The share price has moved a bit recently, but it's hard to argue that the selling is a positive.

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. We usually like to see fairly high levels of insider ownership. Advantage Solutions insiders own about US$16m worth of shares. That equates to 2.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Advantage Solutions Insiders?

The stark truth for Advantage Solutions is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're not overly bothered by recent selling. 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. Case in point: We've spotted 1 warning sign for Advantage Solutions you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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