Yahoo Finance Array Technologies, Inc. (NASDAQ:ARRY) insiders have profited after buying stock worth US$759k last year, current gains stand at US$320k
Array Technologies, Inc. (NASDAQ:ARRY) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 3.2% decline in the stock price. Even after accounting for the recent loss, the US$759k worth of stock purchased by them is now worth US$1.1m or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Array Technologies
The Last 12 Months Of Insider Transactions At Array Technologies
Over the last year, we can see that the biggest insider purchase was by CEO & Director Kevin Hostetler for US$500k worth of shares, at about US$13.33 per share. Even though the purchase was made at a significantly lower price than the recent price (US$21.52), we still think insider buying is a positive. 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.
Happily, we note that in the last year insiders paid US$759k for 50.16k shares. But they sold 26.02k shares for US$406k. Overall, Array Technologies insiders were net buyers during the last year. They paid about US$15.14 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Array Technologies Have Sold Stock Recently
The last three months saw significant insider selling at Array Technologies. In total, Chief Legal Officer & General Counsel Tyson Hottinger dumped US$176k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Array Technologies
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Array Technologies insiders own about US$21m worth of shares. That equates to 0.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Array Technologies Tell Us?
An insider sold Array Technologies shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Array Technologies you should be aware of.
But note: Array Technologies 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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