Investors who take an interest in Array Technologies, Inc. (NASDAQ:ARRY) should definitely note that the CEO & Director, Kevin Hostetler, recently paid US$13.33 per share to buy US$500k worth of the stock. That’s a very decent purchase to our minds and it grew their holding by a solid 35%.
The Last 12 Months Of Insider Transactions At Array Technologies
In fact, the recent purchase by Kevin Hostetler was the biggest purchase of Array Technologies shares made by an insider individual in the last twelve months, according to our records. So it’s clear an insider wanted to buy, at around the current price, which is US$13.48. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today’s share price, as the discount to value may have narrowed with the rising price. The good news for Array Technologies share holders is that insiders were buying at near the current price.
While Array Technologies insiders bought shares during the last year, they didn’t sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Array Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Array Technologies
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Array Technologies insiders own about US$9.6m worth of shares (which is 0.5% of the company). Whilst better than nothing, we’re not overly impressed by these holdings.
So What Do The Array Technologies Insider Transactions Indicate?
It’s certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Array Technologies insiders are expecting a bright future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for Array Technologies (1 doesn’t sit too well with us!) that we believe deserve your full attention.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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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.