How Many Nu Skin Enterprises, Inc. (NYSE:NUS) Shares Did Insiders Buy, In The Last Year?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Nu Skin Enterprises, Inc. (NYSE:NUS).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
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. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
Check out our latest analysis for Nu Skin Enterprises
The Last 12 Months Of Insider Transactions At Nu Skin Enterprises
The Executive Chairman of the Board Steven Lund made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$48.05 each. Even though the purchase was made at a significantly lower price than the recent price (US$53.83), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 40.87k shares for US$2.0m. On the other hand they divested 13.11k shares, for US$668k. In the last twelve months there was more buying than selling by Nu Skin Enterprises insiders. You can see the insider transactions (by companies and 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!
Nu Skin Enterprises is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Nu Skin Enterprises Insiders Are Selling The Stock
The last three months saw significant insider selling at Nu Skin Enterprises. In total, Chief Accounting Officer James Thomas sold US$97k 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 Nu Skin Enterprises
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. Insiders own 1.9% of Nu Skin Enterprises shares, worth about US$52m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Nu Skin Enterprises Insiders?
An insider sold Nu Skin Enterprises shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nu Skin Enterprises. While conducting our analysis, we found that Nu Skin Enterprises has 2 warning signs and it would be unwise to ignore them.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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