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Whilst it may not be a huge deal, we thought it was good to see that the CommScope Holding Company, Inc. (NASDAQ:COMM) Senior VP & President of Outdoor Wireless Networks, Farid Firouzbakht, recently bought US$70k worth of stock, for US$6.97 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 14%.
The Last 12 Months Of Insider Transactions At CommScope Holding Company
In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Claudius Watts bought US$992k worth of shares at a price of US$15.26 per share. That means that an insider was happy to buy shares at above the current price of US$7.20. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months CommScope Holding Company insiders were buying shares, but not selling. The average buy price was around US$10.26. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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).
Insider Ownership of CommScope Holding Company
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that CommScope Holding Company insiders own 2.6% of the company, worth about US$38m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At CommScope Holding Company Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of CommScope Holding Company we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that CommScope Holding Company has 2 warning signs and it would be unwise to ignore these.
Of course CommScope Holding Company 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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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.