It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Intellicheck, Inc.’s (NASDAQ:IDN) case, it’s fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Intellicheck
Intellicheck Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chief Financial Officer Jeffrey Ishmael for US$99k worth of shares, at about US$2.50 per share. That means that an insider was happy to buy shares at around the current price of US$2.66. 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. Happily, the Intellicheck insiders decided to buy shares at close to current prices.
In the last twelve months Intellicheck insiders were buying shares, but not selling. The average buy price was around US$2.16. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today’s share price. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Intellicheck Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Intellicheck. Overall, four insiders shelled out US$180k for shares in the company — and none sold. This makes one think the business has some good points.
Insider Ownership Of Intellicheck
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Intellicheck insiders own about US$4.3m worth of shares (which is 8.6% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Intellicheck Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don’t feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Intellicheck insiders are expecting a bright future. 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. Case in point: We’ve spotted 2 warning signs for Intellicheck you should be aware of.
But note: Intellicheck 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, 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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