Yahoo Finance Insider Buying: The Infinera Corporation (NASDAQ:INFN) Chief Operating Officer Just Bought 8.4% More Shares
Even if it's not a huge purchase, we think it was good to see that David Heard, the Chief Operating Officer of Infinera Corporation (NASDAQ:INFN) recently shelled out US$65k to buy stock, at US$4.33 per share. However, it only increased their shares held by 8.4%, and it wasn't a huge purchase by absolute value, either.
View our latest analysis for Infinera
The Last 12 Months Of Insider Transactions At Infinera
In fact, the recent purchase by Chief Operating Officer David Heard was not their only acquisition of Infinera shares this year. Earlier in the year, they paid US$3.13 per share in a US$78k purchase. We do like to see buying, but this purchase was made at well below the current price of US$4.49. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
David Heard purchased 40.00k shares over the year. The average price per share was US$3.58. You can see a visual depiction of insider transactions (by 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!
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).
Does Infinera Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Infinera insiders own 2.5% of the company, worth about US$21m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Infinera Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Infinera shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Infinera. Every company has risks, and we've spotted 3 warning signs for Infinera you should know about.
But note: Infinera may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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. 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. Thank you for reading.
