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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in USANA Health Sciences, Inc. (NYSE:USNA).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for USANA Health Sciences
USANA Health Sciences Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Founder & Chairman of the Board, Myron Wentz, for US$46m worth of shares, at about US$118 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$70.78. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders netted US$91m for 752k shares sold. Insiders in USANA Health Sciences didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insiders at USANA Health Sciences Have Sold Stock Recently
Over the last three months, we've seen a bit of insider selling at USANA Health Sciences. Lead Independent Director Gilbert Fuller sold just US$24k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Insider Ownership of USANA Health Sciences
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that USANA Health Sciences insiders own 42% of the company, worth about US$701m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.