We'd be surprised if FARO Technologies, Inc. (NASDAQ:FARO) shareholders haven't noticed that the Independent Chairman of the Board, Yuval Wasserman, recently sold US$335k worth of stock at US$18.09 per share. The eyebrow raising move amounted to a reduction of 14% in their holding.
FARO Technologies Insider Transactions Over The Last Year
The Independent Director Alexander Davern made the biggest insider purchase in the last 12 months. That single transaction was for US$515k worth of shares at a price of US$17.24 each. That means that even when the share price was higher than US$16.82 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Alexander Davern.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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. Insiders own 1.6% of FARO Technologies shares, worth about US$5.2m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About FARO Technologies Insiders?
Insiders haven't bought FARO Technologies stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. But we'd like it if insiders owned more stock, overall. So the company doesn't look great on this analysis. While it's good to be aware of 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. While conducting our analysis, we found that FARO Technologies has 2 warning signs and it would be unwise to ignore them.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com