Usually, if one insider buys stock, it might not be a monumental event. However, if multiple insiders are making purchases as in this case, beauty health company (NASDAQ:SKIN), which sends a positive message to the company's shareholders.
While we are by no means saying that investors should make decisions solely based on the actions of a company's directors, we believe it is perfectly logical to monitor the actions of insiders. .
Check out the latest beauty and health analysis.
Insider trades in beauty and health over the past year
In the last twelve months, the biggest purchase by insiders was when Chairman Brenton L. Sanders bought US$362k worth of shares at a price of US$6.10 per share. So it's clear that insiders wanted to buy at a higher price than the current share price ($3.08). Their views may have changed since then, but at least it shows they were optimistic back then. In our view, the price insiders pay for shares is very important. Generally, if you paid more than the current price, it's more reassuring because it suggests you saw value even at a higher level.
Over the last twelve months, Beauty Health insiders have been buying, but not selling, shares. The graph below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, click on the chart below.
Beauty Health isn't the only stock that insiders are buying.For people who like searching succeed in investing this free This list of growing companies with recent insider purchasing may be just the ticket.
Insider ownership in Beauty Health
I like to see how many shares a company's insiders own in a company, as it can tell us how well aligned a company is with its insiders. Typically, the higher the insider ownership, the more likely it is that insiders are incentivized to build the company for the long term. Insiders own 7.4% of Beauty Health shares, worth approximately US$30m. Certainly, we've seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and other shareholders.
So what does the beauty health insider trading show?
The fact that there aren't any insider transactions in Beauty Health these days certainly doesn't bother us. However, insiders have indicated that interest in the stock has increased over the last year. Insiders have an interest in Beauty Health, Inc., and their transactions do not cause us concern. So while these insider transactions can help us form a theory about the stock, it's also worth knowing what risks this company faces.Every company has risks, and we found that One warning sign for beauty and health you should know about.
If you want to check out another company with potentially better financials, don't miss this free List of interesting companies with high return on equity and low debt.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory body. The Company currently only accounts for open market transactions and private dispositions of direct profits, and does not account for derivative transactions or indirect profits.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
