Whilst it may not be a huge deal, we thought it was good to see that the Innovative Solutions and Support, Inc. (NASDAQ:ISSC) Independent Chairman & Presiding Director, Glen Bressner, recently bought US$83k worth of stock, for US$5.56 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 15%.
Innovative Solutions and Support Insider Transactions Over The Last Year
Notably, that recent purchase by Glen Bressner is the biggest insider purchase of Innovative Solutions and Support shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$6.31), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Glen Bressner purchased 25.00k shares over the year. The average price per share was US$6.48. 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!
Innovative Solutions and Support is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Innovative Solutions and Support insiders own about US$37m worth of shares. That equates to 34% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Innovative Solutions and Support Insiders?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Innovative Solutions and Support 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. You'd be interested to know, that we found 1 warning sign for Innovative Solutions and Support and we suggest you have a look.
But note: Innovative Solutions and Support 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.
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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.