Yahoo Finance A number of insiders bought Snap One Holdings Corp. (NASDAQ:SNPO) stock last year, which is great news for shareholders
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Snap One Holdings Corp.'s (NASDAQ:SNPO) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Snap One Holdings
The Last 12 Months Of Insider Transactions At Snap One Holdings
Over the last year, we can see that the biggest insider purchase was by CEO & Director John Heyman for US$103k worth of shares, at about US$10.90 per share. That means that an insider was happy to buy shares at around the current price of US$11.40. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Snap One Holdings insiders decided to buy shares at close to current prices.
While Snap One Holdings insiders bought shares during the last year, they didn't sell. 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!
Snap One Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Snap One Holdings 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 Snap One Holdings insiders own 3.5% of the company, worth about US$30m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Snap One Holdings Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Snap One Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Snap One Holdings and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Snap One Holdings you should know about.
But note: Snap One Holdings 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. 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.
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