Insiders Could Have Profited By Holding onto VOXX International Shares Despite 10% Drop

Even though VOXX International Corporation (NASDAQ:VOXX) has fallen by 10% over the past week , insiders who sold US$4.0m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$10.00 is still below the current share price.

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.

Check out our latest analysis for VOXX International

The Last 12 Months Of Insider Transactions At VOXX International

In the last twelve months, the biggest single sale by an insider was when the Co-Vice Chairman, Beat Kahli, sold US$2.0m worth of shares at a price of US$10.00 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$7.37. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Beat Kahli.

Beat Kahli divested 402.50k shares over the last 12 months at an average price of US$10.00. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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 24% of VOXX International shares, worth about US$40m. 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 Do The VOXX International Insider Transactions Indicate?

The fact that there have been no VOXX International insider transactions recently certainly doesn't bother us. Still, the insider transactions at VOXX International in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with VOXX International and understanding it should be part of your investment process.

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.