Varex Imaging Insider Buyers Net US$26k Despite 11% Stock Decline

Varex Imaging Corporation (NASDAQ:VREX) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 11% decline in the stock price. After taking the recent loss into consideration, the US$207.1k worth of stock they bought is now worth US$233.2k, indicating that their investment yielded a positive return.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Varex Imaging

The Last 12 Months Of Insider Transactions At Varex Imaging

The CFO & Principal Accounting Officer Shubham Maheshwari made the biggest insider purchase in the last 12 months. That single transaction was for US$108k worth of shares at a price of US$10.82 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.27. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Shubham Maheshwari bought 19.01k shares over the last 12 months at an average price of US$10.90. 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!

Varex Imaging 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.

Insider Ownership Of Varex Imaging

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. Our data indicates that Varex Imaging insiders own about US$6.5m worth of shares (which is 1.0% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Varex Imaging Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Varex Imaging shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Varex Imaging stock. 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. For example - Varex Imaging has 1 warning sign we think you should be aware of.

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.