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Those following along with FARO Technologies, Inc. (NASDAQ:FARO) will no doubt be intrigued by the recent purchase of shares by Alexander Davern, Lead Independent Director of the company, who spent a stonking US$515k on stock at an average price of US$17.16. Not only is that a big swing, but it increased their holding size by 46%, which is definitely great to see.
Check out our latest analysis for FARO Technologies
The Last 12 Months Of Insider Transactions At FARO Technologies
In fact, the recent purchase by Alexander Davern was the biggest purchase of FARO Technologies shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$17.04. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
FARO Technologies insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$13.00. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
FARO Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does FARO 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. Our data indicates that FARO Technologies insiders own about US$5.0m worth of shares (which is 1.5% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About FARO Technologies Insiders?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on FARO Technologies stock. 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 FARO Technologies and we suggest you have a look.