Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Commercial Vehicle Group, Inc. (NASDAQ:CVGI), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Our free stock report includes 3 warning signs investors should be aware of before investing in Commercial Vehicle Group. Read for free now.In the last twelve months, the biggest single purchase by an insider was when Independent Director J. Nauman bought US$60k worth of shares at a price of US$2.42 per share. That means that even when the share price was higher than US$0.83 (the recent price), an insider wanted to purchase shares. 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.
Commercial Vehicle Group insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Commercial Vehicle Group
Commercial Vehicle Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 9.0% of Commercial Vehicle Group shares, worth about US$2.6m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Commercial Vehicle Group insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Commercial Vehicle Group. Our analysis shows 3 warning signs for Commercial Vehicle Group (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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