While it might not be a big deal, we thought it was good to see that the VOXX International Society (NASDAQ:VOXX) Chairman Patrick Lavelle recently purchased US$96,000 worth of stock at US$6.31 per share. Although the purchase was not large, increasing their shareholding by only 3.0%, it can be interpreted as a good sign.
VOXX International Insider Transactions Over the Last Year
Independent director Beat Kahli has made the biggest insider buy in the past 12 months. This single transaction involved US$333,000 of shares at a price of US$10.37 each. This means that even when the stock price was above US$8.32 (the recent price), an insider wanted to buy some stock. It is very possible that they regret the purchase, but it is more likely that they are optimistic about the company. For us, it is very important to consider the price that insiders pay for the shares. It is generally more encouraging if they paid above the current price, as this suggests that they perceived value even at higher levels.
Over the past twelve months, insiders have purchased 382,200 shares for $4.1 million. On the other hand, they sold 1,000 shares, for 10,000 USD. Over the past twelve months, there have been more buys than sells by VOXX International insiders. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!
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.
Insider Ownership of VOXX International
I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. High insider participation often makes company management more concerned with the interests of shareholders. It appears that VOXX International insiders own 15% of the company, worth around $30 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
What could insider trading at VOXX International tell us?
The recent insider buying is encouraging. We also rely on the longer-term picture of insider trading. But we don’t feel the same way about the company making losses. Given that insiders also own a good chunk of VOXX International, we think they’re probably pretty confident of a bright future. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. During our analysis, we found that VOXX International has 2 warning signs and it would be unwise to ignore them.
If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.
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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