Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Nanosonics Limited (ASX:NAN), that sends out a positive message to the company’s shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Nanosonics
The Last 12 Months Of Insider Transactions At Nanosonics
The CEO, President, Michael Kavanagh, made the biggest insider sale in the last 12 months. That single transaction was for AU$121k worth of shares at a price of AU$4.83 each. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of AU$2.81. So it may not shed much light on insider confidence at current levels. Michael Kavanagh was the only individual insider to sell shares in the last twelve months.
Happily, we note that in the last year insiders paid AU$168k for 61.46k shares. But insiders sold 25.00k shares worth AU$121k. In the last twelve months there was more buying than selling by Nanosonics insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Nanosonics Have Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Nanosonics. Not only was there no selling that we can see, but they collectively bought AU$168k worth of shares. This makes one think the business has some good points.
Insider Ownership Of Nanosonics
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Nanosonics insiders own about AU$129m worth of shares. That equates to 15% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Nanosonics Insiders?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Nanosonics. That’s what I like to see! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
