Yahoo Finance Bullish Mobileye Global Insider Buying Worth US$1.42m Yet To Pay Off
The recent price decline of 14% in Mobileye Global Inc.'s (NASDAQ:MBLY) stock may have disappointed insiders who bought US$1.42m worth of shares at an average price of US$34.37 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$1.08m which is not ideal.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Mobileye Global
Mobileye Global Insider Transactions Over The Last Year
The Lead Independent Director Claire McCaskill made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$35.95 each. That means that an insider was happy to buy shares at above the current price of US$25.97. 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Mobileye Global insiders may have bought shares in the last year, but they didn't sell any. 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!
Mobileye Global is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Mobileye Global Insiders Bought Stock Recently
It's good to see that Mobileye Global insiders have made notable investments in the company's shares. Chair of the Board of Directors Patrick Gelsinger spent US$100k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Mobileye Global
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Mobileye Global insiders own about US$47m worth of shares. That equates to 0.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Mobileye Global Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Mobileye Global insiders are well aligned, and that they may think the share price is too low. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Mobileye Global.
But note: Mobileye Global 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.
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