Investors interested in Applied Blockchain, Inc. (NASDAQ:APLD) should definitely note that independent director Virginia Moore recently paid $2.29 per share to buy $115,000 worth of stock. It’s a very solid buy in our book, and has increased their stake by a remarkable 16%.

See our latest analysis for Applied Blockchain

The Last 12 Months of Insider Trading at Applied Blockchain

Notably, this recent purchase by Virginia Moore is the largest insider buy of Applied Blockchain stock we have seen in the last year. While we like to see insider buying, we note that this big buy was significantly below the recent price of US$3.65. Because it occurred at a lower valuation, that tells us little about whether insiders might find today’s price attractive.

The chart below shows insider trading (by companies and individuals) over the past year. If you click on the chart, you can see all individual trades including stock price, individual and date!

Applied Blockchain isn’t the only stock insiders are buying. So take a look at this free list of growing companies with insider buying.

Insider ownership

Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. High insider participation often makes company management more concerned with the interests of shareholders. It appears that Applied Blockchain insiders own 11% of the company, worth around $39 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.

What could insider trading tell us at Applied Blockchain?

The recent insider buying is encouraging. We also rely on the longer-term picture of insider trading. But on the other hand, the company has made a loss in the last year, which makes us a bit cautious. When combined with notable insider ownership, these factors suggest that Applied Blockchain insiders are well-aligned and may believe the stock price is too low. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. To help you, we found 4 warning signs (2 make us uncomfortable!) you should be aware of before buying Applied Blockchain stock.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.