Those following along with Belden Inc. (NYSE:BDC) will no doubt be intrigued by the recent purchase of shares by Ashish Chand, Executive Vice President of Industrial Automation of the company, who spent a stonking US$501k on stock at an average price of US$50.36. That purchase boosted their holding by 136%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
The Last 12 Months Of Insider Transactions At Belden
Notably, that recent purchase by Ashish Chand is the biggest insider purchase of Belden shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$49.70). 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Ashish Chand.
Ashish Chand bought 14.29k shares over the last 12 months at an average price of US$52.51. 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!
Belden is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Belden Boast High Insider Ownership?
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. It appears that Belden insiders own 1.3% of the company, worth about US$29m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Belden Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Belden insiders are well aligned, and that they may think the share price is too low. 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. You'd be interested to know, that we found 2 warning signs for Belden and we suggest you have a look.
Of course Belden 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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