Aptera Motors' Stock Sinks To US$1.44, But Insiders Sold Even Lower

Even though Aptera Motors Corp. (NASDAQ:SEV) has fallen by 12% over the past week , insiders who sold US$305k worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$2.81 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The Last 12 Months Of Insider Transactions At Aptera Motors

The insider, Michael Johnson, made the biggest insider sale in the last 12 months. That single transaction was for US$150k worth of shares at a price of US$3.09 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$1.44. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Michael Johnson.

Michael Johnson sold a total of 108.50k shares over the year at an average price of US$2.81. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Aptera Motors

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Aptera Motors Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Aptera Motors insiders own 45% of the company, currently worth about US$25m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Aptera Motors Insider Transactions Indicate?

The fact that there have been no Aptera Motors insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Aptera Motors insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aptera Motors. For instance, we've identified 3 warning signs for Aptera Motors (1 doesn't sit too well with us) you should be aware of.

Of course Aptera Motors 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 of direct interests only, but not derivative transactions or indirect interests.

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.