We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Integra LifeSciences Holdings Corporation (NASDAQ:IART).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Integra LifeSciences Holdings Insider Transactions Over The Last Year
Corporate VP of International & CFO Glenn Coleman made the biggest insider sale in the last 12 months. That single transaction was for US$562k worth of shares at a price of US$63.00 each. So we know that an insider sold shares at around the present share price of US$56.14. They might be selling for a variety of reasons, but it’s hard to argue this is a bullish sign. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment.
In total, Integra LifeSciences Holdings insiders sold more than they bought over the last year. The sellers received a price of around US$62.99, on average. It’s not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn’t put too much weight on it. You can see a visual depiction of insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Integra LifeSciences Holdings insiders own 3.4% of the company, currently worth about US$164m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Integra LifeSciences Holdings Insider Transactions Indicate?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. While we feel good about high insider ownership of Integra LifeSciences Holdings, we can’t say the same about the selling of shares. Of course, the future is what matters most. So if you are interested in Integra LifeSciences Holdings, you should check out this free report on analyst forecasts for the company.
But note: Integra LifeSciences Holdings 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.
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