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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Bassett Furniture Industries, Incorporated (NASDAQ:BSET), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
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.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.
View our latest analysis for Bassett Furniture Industries
Bassett Furniture Industries Insider Transactions Over The Last Year
Independent Director John Belk made the biggest insider purchase in the last 12 months. That single transaction was for US$315k worth of shares at a price of US$20.99 each. That means that an insider was happy to buy shares at above the current price of US$15.07. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 22519 shares for US$433k. On the other hand they divested 910 shares, for US$16k. In the last twelve months there was more buying than selling by Bassett Furniture Industries insiders. 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!
Bassett Furniture Industries is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Bassett Furniture Industries Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Bassett Furniture Industries. President Robert Spilman purchased US$24k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.