Insider Stock Buying Reaches US$2.35m On Innovative Solutions and Support
Over the last year, a good number of insiders have significantly increased their holdings in Innovative Solutions and Support, Inc. (NASDAQ:ISSC). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Innovative Solutions and Support
The Last 12 Months Of Insider Transactions At Innovative Solutions and Support
In the last twelve months, the biggest single purchase by an insider was when insider Christopher Harborne bought US$1.0m worth of shares at a price of US$7.75 per share. That implies that an insider found the current price of US$7.77 per share to be enticing. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders purchased 299.69k shares for US$2.4m. But insiders sold 6.43k shares worth US$45k. In total, Innovative Solutions and Support 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!
Innovative Solutions and Support is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Innovative Solutions and Support Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Innovative Solutions and Support. We can see that Independent Chairman & Presiding Director Glen Bressner paid US$78k for shares in the company. No-one sold. This makes one think the business has some good points.
Does Innovative Solutions and Support 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. We usually like to see fairly high levels of insider ownership. Insiders own 22% of Innovative Solutions and Support shares, worth about US$28m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Innovative Solutions and Support Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Innovative Solutions and Support we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Innovative Solutions and Support 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
