It’s not uncommon to see companies perform well in the years following insider buying. The flip side is that there are more than a few examples of insiders selling stocks ahead of a period of poor performance. Thus, shareholders may well want to know whether insiders have bought or sold shares in VOXX International Society (NASDAQ: VOXX).
What is insider selling?
It is completely normal to see company insiders, such as members of the board of directors, trading in company stock from time to time. However, these insiders must disclose their business activities and not trade on the basis of inside information.
Insider trading isn’t the most important thing when it comes to long-term investing. But logic dictates that you pay attention to whether insiders are buying or selling stocks. For example, a Harvard University to study found that “insider buying yields abnormal returns of more than 6% per year”.
Check out our latest analysis for VOXX International
The last 12 months of insider trading at VOXX International
Insider Beat Kahli made the biggest insider buy in the last 12 months. This single transaction was for US$907,000 of shares at a price of US$4.45 each. We like to see buy, but this buy was made well below the current price of US$19.76. Because it occurred at a lower valuation, that tells us little about whether insiders might find today’s price attractive.
Beat Kahli bought 216.96k shares during the year. The average price per share was US$4.62. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
VOXX International isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.
Does VOXX International boast of high insider ownership?
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. We generally like to see fairly high levels of insider ownership. It’s great to see that VOXX International insiders own 21% of the company, worth around $100 million. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
So what does this data suggest about international VOXX insiders?
The fact that there have been no VOXX International insider trades recently certainly doesn’t bother us. On a more positive note, last year’s transactions are encouraging. Judging by their trading and strong insider participation, VOXX International insiders feel good about the future of the company. In addition to knowing insider trading taking place, it is beneficial to identify the risks that VOXX International faces. Every business has risks, and we’ve spotted 2 warning signs for VOXX International (1 of which is a little worrying!) that you should know about.
Sure VOXX International may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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