Varex Imaging Falls To US$12.98, But Insiders Sold At Lower Price

Despite the fact that Varex Imaging Corporation's (NASDAQ:VREX) value has dropped 11% in the last week insiders who sold US$122k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$19.72 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Varex Imaging

Varex Imaging Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Legal Officer, Kimberley Honeysett, sold US$122k worth of shares at a price of US$19.72 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$12.98. So it is hard to draw any strong conclusion from it. Kimberley Honeysett was the only individual insider to sell over the last year.

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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Varex Imaging

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Varex Imaging insiders own 1.0% of the company, worth about US$5.1m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Varex Imaging Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Varex Imaging insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. To that end, you should learn about the 2 warning signs we've spotted with Varex Imaging (including 1 which makes us a bit uncomfortable).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com