Even if it's not a huge purchase, we think it was good to see that Martha Aronson, the Independent Director of Cardiovascular Systems, Inc. (NASDAQ:CSII) recently shelled out US$52k to buy stock, at US$34.59 per share. That purchase might not be huge but it did increase their holding by 25%.
The Last 12 Months Of Insider Transactions At Cardiovascular Systems
Notably, that recent purchase by Independent Director Martha Aronson was not the only time they bought Cardiovascular Systems shares this year. They previously made an even bigger purchase of US$97k worth of shares at a price of US$32.22 per share. That implies that an insider found the current price of US$35.17 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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. Happily, the Cardiovascular Systems insiders decided to buy shares at close to current prices.
Cardiovascular Systems insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Cardiovascular Systems is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Cardiovascular Systems Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Cardiovascular Systems insiders own 3.5% of the company, worth about US$49m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Cardiovascular Systems Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Cardiovascular Systems we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Cardiovascular Systems that deserve your attention before buying any shares.
Of course Cardiovascular Systems 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, but not derivative transactions.
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