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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in CarParts.com, Inc.'s (NASDAQ:PRTS) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for CarParts.com
The Last 12 Months Of Insider Transactions At CarParts.com
The Independent Director Jimmy Barnes made the biggest insider purchase in the last 12 months. That single transaction was for US$103k worth of shares at a price of US$1.10 each. That means that even when the share price was higher than US$0.98 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
CarParts.com insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that CarParts.com insiders own 8.7% of the company, worth about US$4.9m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About CarParts.com Insiders?
The fact that there have been no CarParts.com insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if CarParts.com insiders bought more shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - CarParts.com has 2 warning signs we think you should be aware of.