Insider Buying: The Accuray Incorporated (NASDAQ:ARAY) Independent Chairman of the Board Just Bought 6.7% More Shares
Even if it's not a huge purchase, we think it was good to see that Joseph Whitters, the Independent Chairman of the Board of Accuray Incorporated (NASDAQ:ARAY) recently shelled out US$64k to buy stock, at US$3.64 per share. However, it only increased their shares held by 6.7%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Accuray
Accuray Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Chairman of the Board Joseph Whitters was not their only acquisition of Accuray shares this year. Earlier in the year, they paid US$3.46 per share in a US$173k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.86. 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$374k for 97.50k shares. But they sold 102.20k shares for US$342k. Overall, Accuray insiders were net buyers during the last year. The average buy price was around US$3.83. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Accuray
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Accuray insiders own 3.2% of the company, worth about US$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Accuray Insiders?
It is good to see recent purchasing. 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. Insiders likely see value in Accuray shares, given these transactions (along with notable insider ownership of the company). 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.
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, but not derivative transactions.
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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