How Many Sharps Compliance Corp. (NASDAQ:SMED) Shares Did Insiders Buy, In The Last Year?
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Sharps Compliance Corp. (NASDAQ:SMED).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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'.
View our latest analysis for Sharps Compliance
The Last 12 Months Of Insider Transactions At Sharps Compliance
Independent Director Parris Holmes made the biggest insider purchase in the last 12 months. That single transaction was for US$132k worth of shares at a price of US$3.34 each. So it's clear an insider wanted to buy, at around the current price, which is US$3.51. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Sharps Compliance share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders bought 46250 shares for a total of US$153k. In the last twelve months Sharps Compliance insiders were buying shares, but not selling. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Sharps Compliance Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Sharps Compliance. Overall, three insiders shelled out US$153k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Sharps Compliance
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 35% of Sharps Compliance shares, worth about US$20m. 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 Sharps Compliance Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Sharps Compliance we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Sharps Compliance, you should check out this free report on analyst forecasts for the company.
But note: Sharps Compliance 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.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
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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. Thank you for reading.
