Anyone interested in Gentex Corporation (NASDAQ:GNTX) should probably be aware that the Independent Director, Ling Zang, recently divested US$343k worth of shares in the company, at an average price of US$34.34 each. The eyebrow raising move amounted to a reduction of 47% in their holding.
The Last 12 Months Of Insider Transactions At Gentex
Notably, that recent sale by Ling Zang is the biggest insider sale of Gentex shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$34.06. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Happily, we note that in the last year insiders paid US$8.2k for 381.00 shares. But insiders sold 33.06k shares worth US$1.0m. In total, Gentex insiders sold more than they bought over the last year. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Gentex
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. It appears that Gentex insiders own 0.2% of the company, worth about US$18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Gentex Insiders?
Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Gentex and we suggest you have a look.
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, but not derivative transactions.
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