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CommScope Holding Company, Inc. (NASDAQ:COMM) shareholders (or potential shareholders) will be happy to see that the President, Charles Treadway, recently bought a whopping US$500k worth of stock, at a price of US$10.41. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 9.9%.
Check out our latest analysis for CommScope Holding Company
CommScope Holding Company Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Claudius Watts for US$636k worth of shares, at about US$9.96 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While CommScope Holding Company insiders bought shares during the last year, they didn't sell. Their average price was about US$8.67. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does CommScope Holding Company Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that CommScope Holding Company insiders own 2.5% of the company, worth about US$60m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The CommScope Holding Company Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of CommScope Holding Company we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in CommScope Holding Company, you should check out this free report on analyst forecasts for the company.