Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of VOXX International Corporation (NASDAQ:VOXX), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At VOXX International
The President & Co-Vice Chairman Beat Kahli made the biggest insider purchase in the last 12 months. That single transaction was for US$188k worth of shares at a price of US$7.52 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$8.94. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
VOXX International insiders may have bought shares in the last year, but they didn't sell any. 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!
VOXX International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does VOXX International Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that VOXX International insiders own 25% of the company, worth about US$52m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At VOXX International Tell Us?
It doesn't really mean much that no insider has traded VOXX International shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in VOXX International and we see no evidence to suggest they are worried about the future. 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. When we did our research, we found 3 warning signs for VOXX International (1 is a bit unpleasant!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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