Potential CommScope Holding Company, Inc. (NASDAQ:COMM) shareholders may wish to note that the President, Charles Treadway, recently bought US$250k worth of stock, paying US$1.63 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 17%.
Check out our latest analysis for CommScope Holding Company
CommScope Holding Company Insider Transactions Over The Last Year
Notably, that recent purchase by Charles Treadway is the biggest insider purchase of CommScope Holding Company 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$1.90), 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.
CommScope Holding Company insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$2.81. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
CommScope Holding Company 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
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CommScope Holding Company insiders own about US$11m worth of shares. That equates to 2.6% of the company. 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 Does This Data Suggest About CommScope Holding Company Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of CommScope Holding Company we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CommScope Holding Company. For instance, we've identified 3 warning signs for CommScope Holding Company (2 are significant) you should be aware of.
But note: CommScope Holding Company 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.