Favourable Signals For Neogen: Numerous Insiders Acquired Stock
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Neogen Corporation (NASDAQ:NEOG), it sends a favourable message to the company's shareholders.
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 Neogen
The Last 12 Months Of Insider Transactions At Neogen
The COO & VP Douglas Jones made the biggest insider purchase in the last 12 months. That single transaction was for US$152k worth of shares at a price of US$15.17 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$19.84. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$425k for 27.50k shares. On the other hand they divested 4.86k shares, for US$76k. Overall, Neogen insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Neogen Insiders Bought Stock Recently
At Neogen,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent US$380k on shares. But we did see insider selling worth US$76k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Does Neogen Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Neogen insiders own 0.1% of the company, worth about US$5.3m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Neogen Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Neogen stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
