Neogen Corporation (NASDAQ:NEOG) insiders placed bullish bets worth US$1.2m in the last 12 months

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Neogen Corporation (NASDAQ:NEOG), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Neogen

The Last 12 Months Of Insider Transactions At Neogen

In the last twelve months, the biggest single purchase by an insider was when President John Adent bought US$404k worth of shares at a price of US$23.07 per share. That means that an insider was happy to buy shares at above the current price of US$17.54. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Neogen insiders were buying shares, but not selling. Their average price was about US$17.91. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

Neogen is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Neogen Have Bought Stock Recently

There was some insider buying at Neogen over the last quarter. COO & VP Douglas Jones shelled out US$45k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$3.6m worth of Neogen stock, about 0.09% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Neogen Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Neogen stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Neogen.

Of course Neogen 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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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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