Potential Immersion Corporation (NASDAQ:IMMR) shareholders may wish to note that the Executive Chairperson, Eric Singer, recently bought US$146k worth of stock, paying US$7.29 for each share. Although the purchase only increased their holding by 3.2%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Immersion
Notably, that recent purchase by Executive Chairperson Eric Singer was not the only time they bought Immersion shares this year. They previously made an even bigger purchase of US$744k worth of shares at a price of US$5.28 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.91. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Immersion insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. 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.
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. We usually like to see fairly high levels of insider ownership. Insiders own 5.1% of Immersion shares, worth about US$13m. 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 Do The Immersion Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Immersion we think they are probably pretty confident of 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 3 warning signs for Immersion you should be aware of.
But note: Immersion 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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