Insider Buying: The comScore, Inc. (NASDAQ:SCOR) Executive Vice Chairman Just Bought 1.8% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the comScore, Inc. (NASDAQ:SCOR) Executive Vice Chairman, William Livek, recently bought US$59k worth of stock, for US$1.17 per share. Although the purchase is not a big one, increasing their shareholding by only 1.8%, it can be interpreted as a good sign.
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The Last 12 Months Of Insider Transactions At comScore
Notably, that recent purchase by Executive Vice Chairman William Livek was not the only time they bought comScore shares this year. They previously made an even bigger purchase of US$1.2m worth of shares at a price of US$1.93 per share. 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$3.1m for 1.50m shares. But insiders sold 16.92k shares worth US$28k. In total, comScore insiders bought more than they sold over the last year. 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!
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 comScore
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that comScore insiders own 5.9% of the company, worth about US$6.5m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At comScore Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that comScore insiders are expecting a bright future. 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. Case in point: We've spotted 2 warning signs for comScore you should be aware of.
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, but not derivative transactions.
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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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