Insider Buying: The Intevac, Inc. (NASDAQ:IVAC) Executive VP of Finance & Administration Just Bought 5.1% More Shares

·3 min read

Even if it's not a huge purchase, we think it was good to see that James Moniz, the Executive VP of Finance & Administration of Intevac, Inc. (NASDAQ:IVAC) recently shelled out US$70k to buy stock, at US$6.98 per share. Although the purchase is not a big one, increasing their shareholding by only 5.1%, it can be interpreted as a good sign.

View our latest analysis for Intevac

Intevac Insider Transactions Over The Last Year

Notably, that recent purchase by James Moniz is the biggest insider purchase of Intevac 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$7.28. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Intevac share holders is that insiders were buying at near the current price.

While Intevac insiders bought shares during the last year, they didn't sell. They paid about US$5.79 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Intevac is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Intevac Boast High Insider Ownership?

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 Intevac insiders own 4.4% of the company, worth about US$8.2m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Intevac 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 Intevac insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Intevac. At Simply Wall St, we found 1 warning sign for Intevac that deserve your attention before buying any shares.

But note: Intevac 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.

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.

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