Precision Optics Corporation Insiders Up US$275k On US$1.48m Investment
Precision Optics Corporation, Inc. (NASDAQ:POCI) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 10% decline in the stock price. After taking the recent loss into consideration, the US$1.48m worth of stock they bought is now worth US$1.76m, indicating that their investment yielded a positive return.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Precision Optics Corporation
The insider Norman Pessin made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$3.60 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.27. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Precision Optics Corporation insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Precision Optics Corporation
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Precision Optics Corporation insiders own about US$9.1m worth of shares. That equates to 19% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Precision Optics Corporation Tell Us?
It doesn't really mean much that no insider has traded Precision Optics Corporation shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Precision Optics Corporation and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Precision Optics Corporation (of which 2 don't sit too well with us!) you should know about.
But note: Precision Optics Corporation may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.