We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Boxlight Corporation (NASDAQ:BOXL).
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.
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 Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
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The Last 12 Months Of Insider Transactions At Boxlight
President & Director Michael Pope made the biggest insider sale in the last 12 months. That single transaction was for US$420k worth of shares at a price of US$7.00 each. That is hardly a positive sign, even though it took place above the latest price (US$2.69). So it may not tell us anything about how insiders feel about the current share price. Michael Pope was the only individual insider to sell shares in the last twelve months. However, we note that Mr Pope also acquired 82,534 shares at $6.30 via The Marlborough Trust (of which Mr Pope is a beneficiary), leaving his total shareholding at the end of period at 659,987 shares.
You can see a visual depiction of on-market insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see the individual transactions based on transaction reporting date, including the share price and individual!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Boxlight
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Boxlight insiders own 33% of the company, worth about US$8.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Boxlight Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. We don’t take much encouragement from the transactions by Boxlight insiders. But it’s good to see that insiders own shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Boxlight.
But note: Boxlight 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.