Insider Buying: The Colfax Corporation (NYSE:CFX) Co-Founder & Chairman of the Board Just Bought 3.3% More Shares
Those following along with Colfax Corporation (NYSE:CFX) will no doubt be intrigued by the recent purchase of shares by Mitchell Rales, Co-Founder & Chairman of the Board of the company, who spent a stonking US$12m on stock at an average price of US$46.19. While that only increased their holding size by 3.3%, it is still a big swing by our standards.
Check out our latest analysis for Colfax
The Last 12 Months Of Insider Transactions At Colfax
Notably, that recent purchase by Mitchell Rales is the biggest insider purchase of Colfax shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$48.05. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.
Over the last year, we can see that insiders have bought 260.20k shares worth US$12m. On the other hand they divested 10.33k shares, for US$377k. In total, Colfax insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Colfax insiders own 12% of the company, worth about US$828m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Colfax Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Colfax. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Colfax and understanding these should be part of your investment process.
But note: Colfax 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, but not derivative transactions.
This article by Simply Wall St is general in nature. 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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