It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in VOXX International Corporation (NASDAQ:VOXX).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year’.
The Last 12 Months Of Insider Transactions At VOXX International
The insider Beat Kahli made the biggest insider purchase in the last 12 months. That single transaction was for US$907k worth of shares at a price of US$4.45 each. We do like to see buying, but this purchase was made at well below the current price of US$19.76. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
Beat Kahli purchased 216.96k shares over the year. The average price per share was US$4.62. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
VOXX International is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does VOXX International Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It’s great to see that VOXX International insiders own 21% of the company, worth about US$100m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About VOXX International Insiders?
The fact that there have been no VOXX International insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, VOXX International insiders feel good about the company’s future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing VOXX International. Every company has risks, and we’ve spotted 2 warning signs for VOXX International (of which 1 is a bit concerning!) you should know about.
Of course VOXX International may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.
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