Yahoo Finance The Chief Financial Officer of Array Technologies, Inc. (NASDAQ:ARRY), Nipul Patel, Just Bought 7.5% More Shares
Investors who take an interest in Array Technologies, Inc. (NASDAQ:ARRY) should definitely note that the Chief Financial Officer, Nipul Patel, recently paid US$21.95 per share to buy US$100k worth of the stock. Although the purchase only increased their holding by 7.5%, it is still a solid purchase in our view.
Check out 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. We do like to see buying, but this purchase was made at well below the current price of US$21.00. 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$802k for 53.36k shares. But they sold 16.19k shares for US$205k. Overall, Array Technologies insiders were net buyers during the last year. The average buy price was around US$15.02. It is certainly positive to see that insiders have invested their own money 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Does Array Technologies Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Array Technologies insiders own 0.6% of the company, worth about US$20m. 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 Do The Array Technologies Insider Transactions Indicate?
The recent insider purchases are heartening. 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. When combined with notable insider ownership, these factors suggest Array Technologies insiders are well aligned, and that they may think the share price is too low. 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. Case in point: We've spotted 3 warning signs for Array Technologies you should be aware of, and 1 of them is significant.
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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