Neogen Insiders Added US$1.09m Of Stock To Their Holdings

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Neogen Corporation's (NASDAQ:NEOG) case, it's fantastic news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Neogen

The Last 12 Months Of Insider Transactions At Neogen

The President John Adent made the biggest insider purchase in the last 12 months. That single transaction was for US$284k worth of shares at a price of US$12.36 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$17.46. 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.

Happily, we note that in the last year insiders paid US$1.1m for 81.00k shares. On the other hand they divested 4.86k shares, for US$76k. In the last twelve months there was more buying than selling by Neogen insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Neogen is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Neogen Have Bought Stock Recently

It's good to see that Neogen insiders have made notable investments in the company's shares. We can see that Independent Director James Tobin paid US$51k for shares in the company. No-one sold. This makes one think the business has some good points.

Insider Ownership Of Neogen

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of Neogen shares, worth about US$6.3m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Neogen Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Neogen insiders are reasonably well aligned, and optimistic for the future. Of course, the future is what matters most. So if you are interested in Neogen, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.