With Accuray Up 16%, Insider Buyers Count Their Returns

Insiders who bought Accuray Incorporated (NASDAQ:ARAY) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$28m as a result of the stock's 16% gain over the same period. In other words, the original US$156.0k purchase is now worth US$207.0k.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Accuray

Accuray Insider Transactions Over The Last Year

The Independent Chairman of the Board Joseph Whitters made the biggest insider purchase in the last 12 months. That single transaction was for US$156k worth of shares at a price of US$1.58 each. Even though the purchase was made at a significantly lower price than the recent price (US$2.07), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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!

Accuray is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Accuray

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Accuray insiders own 3.3% of the company, worth about US$6.8m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Accuray Tell Us?

The fact that there have been no Accuray insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Accuray insiders bought more shares in the company. 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. Every company has risks, and we've spotted 1 warning sign for Accuray you should know about.

Of course Accuray may not be the best stock to buy. So you may wish to see this free collection of high quality 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.