Yahoo Finance Read This Before Buying Accuray Incorporated (NASDAQ:ARAY) Shares
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Accuray Incorporated (NASDAQ:ARAY).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Accuray
Accuray Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when President Joshua Levine sold US$202k worth of shares at a price of US$4.69 per share. That is hardly a positive sign, even though it took place above the latest price (US$3.43). So it is hard to draw any strong conclusion from it. Notably Joshua Levine was also the biggest buyer, having purchased US$236k worth of shares.
Happily, we note that in the last year insiders paid US$236k for 50.00k shares. On the other hand they divested 172.47k shares, for US$742k. Over the last year we saw more insider selling of Accuray shares, than buying. They sold for an average price of about US$4.30. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$3.43). You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Accuray better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Accuray Insiders Are Selling The Stock
The last three months saw some Accuray insider selling. In total, insiders sold US$282k worth of shares in that time. But they spent US$236k on buying, too. While it’s not great to see insider selling, the net amount sold isn’t enough for us to want to read anything into it.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Accuray insiders own 2.8% of the company, worth about US$8.5m. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Accuray Tell Us?
Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. Recent insider selling makes us a little nervous, in light of the broader picture of Accuray insider transactions. And we’re not picking up on high enough insider ownership to give us any comfort. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Accuray.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
