Even if it's not a huge purchase, we think it was good to see that Michael Grainger, the Independent Director of ScanSource, Inc. (NASDAQ:SCSC) recently shelled out US$99k to buy stock, at US$30.97 per share. That purchase might not be huge but it did increase their holding by 15%.
The Last 12 Months Of Insider Transactions At ScanSource
In fact, the recent purchase by Independent Director Michael Grainger was not their only acquisition of ScanSource shares this year. Earlier in the year, they paid US$30.69 per share in a US$123k purchase. So it's clear an insider wanted to buy, at around the current price, which is US$31.93. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Michael Grainger.
Michael Grainger bought 7.20k shares over the last 12 months at an average price of US$30.81. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Does ScanSource Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that ScanSource insiders own 0.9% of the company, worth about US$7.3m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At ScanSource Tell Us?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that ScanSource insiders are expecting a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for ScanSource.
Of course ScanSource may not be the best stock to buy. So you may wish to see this free collection of high quality 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 firstname.lastname@example.org. 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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