Investors who take an interest in Avadel Pharmaceuticals plc (NASDAQ:AVDL) should definitely note that the Independent Non-Executive Chairman of the Board, Geoffrey Glass, recently paid US$9.84 per share to buy US$200k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 16%.

See our latest analysis for Avadel Pharmaceuticals

The Last 12 Months Of Insider Transactions At Avadel Pharmaceuticals

In fact, the recent purchase by Geoffrey Glass was the biggest purchase of Avadel Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$10.32. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Avadel Pharmaceuticals insiders decided to buy shares at close to current prices.

In the last twelve months Avadel Pharmaceuticals insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Avadel Pharmaceuticals 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. Our data indicates that Avadel Pharmaceuticals insiders own about US$7.4m worth of shares (which is 0.8% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Avadel Pharmaceuticals Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. 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 Avadel Pharmaceuticals stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 2 warning signs for Avadel Pharmaceuticals and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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.