A US$112m market cap addition is just what Bel Fuse Inc. (NASDAQ:BELF.A) insiders like to see after purchasing stock worth US$1.8m
Last week, Bel Fuse Inc. (NASDAQ:BELF.A) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 25% last week, resulting in a US$112m increase in the company's market worth. As a result, their original purchase of US$1.8m worth of stock is now worth US$2.3m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Bel Fuse
Bel Fuse Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Christopher Bennett for US$1.0m worth of shares, at about US$31.95 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$43.91. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months Bel Fuse insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Bel Fuse is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Bel Fuse Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Bel Fuse. Not only was there no selling that we can see, but they collectively bought US$787k worth of shares. This makes one think the business has some good points.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 6.5% of Bel Fuse shares, worth about US$36m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Bel Fuse Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Bel Fuse we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Bel Fuse.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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