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Trade Alert: The President Of Bassett Furniture Industries, Incorporated (NASDAQ:BSET), Robert Spilman, Has Just Spent US$90k Buying Shares

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Simply Wall St
·3 min read
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Whilst it may not be a huge deal, we thought it was good to see that the Bassett Furniture Industries, Incorporated (NASDAQ:BSET) President, Robert Spilman, recently bought US$90k worth of stock, for US$10.07 per share. However, we do note that it only increased their holding by 4.1%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Bassett Furniture Industries

The Last 12 Months Of Insider Transactions At Bassett Furniture Industries

In fact, the recent purchase by Robert Spilman was the biggest purchase of Bassett Furniture Industries shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$9.72). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$208k for 16.41k shares. But insiders sold 910 shares worth US$16k. Overall, Bassett Furniture Industries insiders were net buyers last year. The average buy price was around US$12.66. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:BSET Recent Insider Trading, February 28th 2020
NasdaqGS:BSET Recent Insider Trading, February 28th 2020

Bassett Furniture Industries is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Bassett Furniture Industries 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 6.9% of Bassett Furniture Industries shares, worth about US$6.7m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Bassett Furniture Industries 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. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Bassett Furniture Industries insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.