Trade Alert: The President Of VOXX International Corporation (NASDAQ:VOXX), Patrick Lavelle, Has Just Spent US$96k Buying 3.0% More Shares

Even if it’s not a huge purchase, we think it was good to see that Patrick Lavelle, the President of VOXX International Corporation (NASDAQ:VOXX) recently shelled out US$96k to buy stock, at US$6.31 per share. However, it only increased their shares held by 3.0%, and it wasn’t a huge purchase by absolute value, either.

View our latest analysis for VOXX International

The Last 12 Months Of Insider Transactions At VOXX International

The Independent Director Beat Kahli made the biggest insider purchase in the last 12 months. That single transaction was for US$333k worth of shares at a price of US$10.37 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$8.32). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 382.20k shares for US$4.1m. On the other hand they divested 1.00k shares, for US$10k. Overall, VOXX International insiders were net buyers during the last year. 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!

insider-trading-volume

VOXX International 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 VOXX International

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. VOXX International insiders own about US$30m worth of shares. That equates to 15% 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.

So What Does This Data Suggest About VOXX International Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest VOXX International insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing VOXX International. Every company has risks, and we’ve spotted 2 warning signs for VOXX International you should know about.

But note: VOXX International 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, 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.

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