Trade Alert: The Founder Of Joby Aviation, Inc. (NYSE:JOBY), JoeBen Bevirt, Has Just Spent US$194k Buying A Few More Shares

Investors who take an interest in Joby Aviation, Inc. (NYSE:JOBY) should definitely note that the Founder, JoeBen Bevirt, recently paid US$5.53 per share to buy US$194k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn’t a huge purchase by absolute value, either.

View our latest analysis for Joby Aviation

The Last 12 Months Of Insider Transactions At Joby Aviation

In the last twelve months, the biggest single purchase by an insider was when Executive Chairman of the Board Paul Sciarra bought US$980k worth of shares at a price of US$6.32 per share. That means that an insider was happy to buy shares at above the current price of US$5.17. 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. To us, it’s very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 459.77k shares for US$2.8m. But they sold 145.27k shares for US$819k. In the last twelve months there was more buying than selling by Joby Aviation insiders. 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

Joby Aviation is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Joby Aviation insiders own 28% of the company, currently worth about US$864m 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 Does This Data Suggest About Joby Aviation Insiders?

Insider sales and purchases have netted out over the last three months, so it’s hard to draw any conclusion from recent trading. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like Joby Aviation insiders are reasonably well aligned (owning significant chunk of the company’s shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Joby Aviation (2 can’t be ignored!) and we strongly recommend you look at them before investing.

But note: Joby Aviation 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.

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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.

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