Investors may wish to note that the Director of Precision Optics Corporation, Inc., Peter Anania, recently netted US$72k from selling stock, receiving an average price of US$5.00. However we note that the sale only shrunk their holding by 9.4%.
Precision Optics Corporation Insider Transactions Over The Last Year
Notably, that recent sale by Peter Anania is the biggest insider sale of Precision Optics Corporation shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$5.11). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 9.4% of Peter Anania's holding.
Happily, we note that in the last year insiders paid US$45k for 7.77k shares. But insiders sold 14.40k shares worth US$72k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Precision Optics Corporation better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of Precision Optics Corporation
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Precision Optics Corporation insiders own about US$7.5m worth of shares. That equates to 23% of the company. 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 Do The Precision Optics Corporation Insider Transactions Indicate?
An insider hasn't bought Precision Optics Corporation stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 6 warning signs for Precision Optics Corporation you should be aware of, and 2 of these shouldn't be ignored.
But note: Precision Optics Corporation 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. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
