Yahoo Finance Insiders Who Purchased US$1.18m Of CommScope Holding Company Stock May Not Have Expected 15% Tumble
Insiders who bought US$1.18m worth of CommScope Holding Company, Inc.'s (NASDAQ:COMM) stock at an average buy price of US$1.80 over the last year may be disappointed by the recent 15% decrease in the stock. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$777.7k.
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.
View our latest analysis for CommScope Holding Company
The Last 12 Months Of Insider Transactions At CommScope Holding Company
The President Charles Treadway made the biggest insider purchase in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$1.63 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.19). 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. 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. Their average price was about US$1.80. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
CommScope Holding Company is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
CommScope Holding Company Insiders Bought Stock Recently
We saw some CommScope Holding Company insider buying shares in the last three months. Executive VP & CFO Kyle Lorentzen purchased US$15k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.3% of CommScope Holding Company shares, worth about US$8.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The CommScope Holding Company Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if CommScope Holding Company insiders bought more shares in the company. While it's good to be aware of 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. Our analysis shows 3 warning signs for CommScope Holding Company (1 shouldn't be ignored!) and we strongly recommend you look at these before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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