Investors who take an interest in Varex Imaging Corporation (NASDAQ:VREX) should definitely note that the CFO & Principal Accounting Officer, Shubham Maheshwari, recently paid US$10.82 per share to buy US$108k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 22%.
Varex Imaging Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Legal Officer, Kimberley Honeysett, sold US$122k worth of shares at a price of US$19.72 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$11.60. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Kimberley Honeysett.
Shubham Maheshwari bought a total of 19.01k shares over the year at an average price of US$10.90. You can see a visual depiction of insider transactions (by companies and 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 always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Varex Imaging insiders own 1.0% of the company, worth about US$4.6m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Varex Imaging Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Varex Imaging stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Varex Imaging has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.
Of course Varex Imaging 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 of direct interests only, but not derivative transactions or indirect interests.
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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.