Investors who take an interest in Neogen Corporation (NASDAQ:NEOG) should definitely note that the President, John Adent, recently paid US$14.37 per share to buy US$316k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 38%.
Neogen Insider Transactions Over The Last Year
In fact, the recent purchase by President John Adent was not their only acquisition of Neogen shares this year. Earlier in the year, they paid US$23.07 per share in a US$404k purchase. That means that an insider was happy to buy shares at above the current price of US$14.56. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While Neogen insiders bought shares during the last year, they didn't sell. Their average price was about US$19.01. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Neogen is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Neogen
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. From looking at our data, insiders own US$2.4m worth of Neogen stock, about 0.08% of the company. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Neogen Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Neogen insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Neogen. Be aware that Neogen is showing 4 warning signs in our investment analysis, and 2 of those shouldn't be ignored...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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