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 in the company. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. 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.'
The Last 12 Months Of Insider Transactions At Integra LifeSciences Holdings
The insider, John Mooradian, made the biggest insider sale in the last 12 months. That single transaction was for US$430k worth of shares at a price of US$61.42 each. So what is clear is that an insider saw fit to sell at around the current price of US$61.05. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last twelve months insiders purchased 5638 shares for US$308k. But insiders sold 15986 shares worth US$979k. In total, Integra LifeSciences Holdings insiders sold more than they bought over the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Integra LifeSciences Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders at Integra LifeSciences Holdings Have Sold Stock Recently
The last three months saw significant insider selling at Integra LifeSciences Holdings. In total, insiders dumped US$907k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership of Integra LifeSciences Holdings
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Integra LifeSciences Holdings insiders own 3.4% of the company, worth about US$179m. 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 Integra LifeSciences Holdings Tell Us?
Insiders sold Integra LifeSciences Holdings shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Integra LifeSciences Holdings makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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.
Of course Integra LifeSciences Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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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