With Varex Imaging Up 17%, Insider Buyers Count Their Returns
Varex Imaging Corporation (NASDAQ:VREX) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 17% resulting in a US$74m addition to the company’s market value. As a result, their original purchase of US$207.1k worth of stock is now worth US$239.5k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Varex Imaging
The Last 12 Months Of Insider Transactions At Varex Imaging
Over the last year, we can see that the biggest insider sale was by the Chief Legal Officer, Kimberley Honeysett, for US$122k worth of shares, at about US$19.72 per share. 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 US$12.60. So it may not shed much light on insider confidence at current levels. Kimberley Honeysett was the only individual insider to sell shares in the last twelve months.
Shubham Maheshwari bought 19.01k shares over the last 12 months at an average price of US$10.90. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does Varex Imaging 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.0% of Varex Imaging shares, worth about US$5.3m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Varex Imaging Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Varex Imaging insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Varex Imaging. To help with this, we've discovered 2 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Varex Imaging.
But note: Varex Imaging 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 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.