Whilst it may not be a huge deal, we thought it was good to see that the IEC Electronics Corp. (NASDAQ:IEC) Independent Chairman, Jeremy Nowak, recently bought US$57k worth of stock, for US$7.57 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 17%.
The Last 12 Months Of Insider Transactions At IEC Electronics
In fact, the recent purchase by Jeremy Nowak was the biggest purchase of IEC Electronics shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$8.00 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.
IEC Electronics insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$6.73. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
IEC Electronics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of IEC Electronics
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$3.8m worth of IEC Electronics stock, about 4.5% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About IEC Electronics Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that IEC Electronics insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in IEC Electronics.
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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