Bullish insiders at Bel Fuse Inc. (NASDAQ:BELF.A) loaded up on US$1.0m of stock earlier this year

Over the last year, a good number of insiders have significantly increased their holdings in Bel Fuse Inc. (NASDAQ:BELF.A). This is encouraging because it indicates that insiders are more optimistic about the company’s prospects.

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.

See our latest analysis for Bel Fuse

Bel Fuse Insider Transactions Over The Last Year

The insider Christopher Bennett 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$31.95 each. That means that an insider was happy to buy shares at around the current price of US$35.25. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. The good news for Bel Fuse share holders is that insiders were buying at near the current price.

Bel Fuse 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume

Bel Fuse is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Bel Fuse Have Bought Stock Recently

It’s good to see that Bel Fuse insiders have made notable investments in the company’s shares. We can see that insider Christopher Bennett paid US$1.0m for shares in the company. No-one sold. That shows some optimism about the company’s future.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 5.3% of Bel Fuse shares, worth about US$25m. 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 Bel Fuse Tell Us?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Bel Fuse insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Case in point: We’ve spotted 1 warning sign for Bel Fuse you should be aware of.

But note: Bel Fuse 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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