Q: Instead of buying back shares, would it not have been better for the company for insiders to sell some of their shares to increase liquidity?
5i Research Answer:
It could be debated. With the company buying the shares earnings leverage (per share) increases, and with a buyback the 'sting' of insider selling is reduced. Management is likely still confident on growth and specifically noted the company currently has too much cash, so the buyback makes some sense to us versus increasing liquidity.