How Many Intevac, Inc. (NASDAQ:IVAC) Shares Did Insiders Buy, In The Last Year?
It is not uncommon to see companies perform well in the years after insiders buy shares. 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 we'll take a look at whether insiders have been buying or selling shares in Intevac, Inc. (NASDAQ:IVAC).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
View our latest analysis for Intevac
The Last 12 Months Of Insider Transactions At Intevac
In the last twelve months, the biggest single sale by an insider was when the Executive VP & GM of the Thin Film Equipment, Jay Cho, sold US$80k worth of shares at a price of US$6.91 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$5.52. So it is hard to draw any strong conclusion from it. Jay Cho was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$103k for 20.00k shares. But insiders sold 11550 shares worth US$80k. In total, Intevac insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Intevac is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Intevac Have Sold Stock Recently
The last three months saw significant insider selling at Intevac. In total, Executive VP & GM of the Thin Film Equipment Jay Cho sold US$80k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Intevac insiders have about 2.4% of the stock, worth approximately US$3.1m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Intevac Insiders?
An insider hasn't bought Intevac stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. But we'd like it if insiders owned more stock, overall. So overall it's hard to argue insiders are bullish. 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. Every company has risks, and we've spotted 3 warning signs for Intevac you should know about.
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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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