Yahoo Finance A US$116m market cap addition is just what National Vision Holdings, Inc. (NASDAQ:EYE) insiders like to see after purchasing stock worth US$3.0m
Last week, National Vision Holdings, Inc. (NASDAQ:EYE) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 5.6% last week, resulting in a US$116m increase in the company's market worth. In other words, the original US$3.0m purchase is now worth US$3.2m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for National Vision Holdings
The Last 12 Months Of Insider Transactions At National Vision Holdings
Notably, that recent purchase by David Peeler is the biggest insider purchase of National Vision Holdings shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$26.99. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months National Vision Holdings 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!
National Vision Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
National Vision Holdings Insiders Bought Stock Recently
Over the last quarter, National Vision Holdings insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$3.0m worth of shares. That shows some optimism about the company's future.
Insider Ownership of National Vision Holdings
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.5% of National Vision Holdings shares, worth about US$33m. 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 Does This Data Suggest About National Vision Holdings Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest National Vision Holdings insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - National Vision Holdings has 1 warning sign we think you should be aware of.
Of course National Vision Holdings 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, but not derivative transactions.
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