In This Article:
In the last year, many IDEXX Laboratories, Inc. (NASDAQ:IDXX) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At IDEXX Laboratories
In the last twelve months, the biggest single sale by an insider was when the Independent Director, M. Szostak, sold US$1.4m worth of shares at a price of US$466 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$421. So it is hard to draw any strong conclusion from it.
Insiders in IDEXX Laboratories didn't buy any shares in the last year. 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!
View our latest analysis for IDEXX Laboratories
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
IDEXX Laboratories Insiders Are Selling The Stock
The last quarter saw substantial insider selling of IDEXX Laboratories shares. In total, Independent Director M. Szostak sold US$1.4m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Insider Ownership Of IDEXX Laboratories
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. IDEXX Laboratories insiders own about US$333m worth of shares (which is 1.0% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About IDEXX Laboratories Insiders?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, IDEXX Laboratories makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. You'd be interested to know, that we found 1 warning sign for IDEXX Laboratories and we suggest you have a look.