Those following along with Inari Medical, Inc. (NASDAQ:NARI) will no doubt be intrigued by the recent purchase of shares by Donald Milder, Independent Chair of the Board of the company, who spent a stonking US$3.0m on stock at an average price of US$53.44. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 1.7%.
View our latest analysis for Inari Medical
Inari Medical Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Director, William Hoffman, sold US$5.7m worth of shares at a price of US$70.87 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$53.27. So it may not tell us anything about how insiders feel about the current share price.
All up, insiders sold more shares in Inari Medical than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Inari Medical better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Inari Medical Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Inari Medical insiders own 9.9% of the company, currently worth about US$308m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Inari Medical Insider Transactions Indicate?
Unfortunately, there has been more insider selling of Inari Medical stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Every company has risks, and we've spotted 2 warning signs for Inari Medical you should know about.
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 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.