Bausch + Lomb Insiders Added US$1.54m Of Stock To Their Holdings

In the last year, multiple insiders have substantially increased their holdings of Bausch + Lomb Corporation (NYSE:BLCO) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Bausch + Lomb

The CEO & Chairman Brenton Saunders made the biggest insider purchase in the last 12 months. That single transaction was for US$505k worth of shares at a price of US$15.66 each. That means that even when the share price was higher than US$13.71 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Bausch + Lomb insiders may have bought shares in the last year, but they didn't sell any. They paid about US$13.80 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Bausch + Lomb

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Bausch + Lomb Insiders Bought Stock Recently

Over the last quarter, Bausch + Lomb insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$536k worth of shares. That shows some optimism about the company's future.

Does Bausch + Lomb Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Bausch + Lomb insiders own 0.4% of the company, worth about US$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Bausch + Lomb Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. 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 Bausch + Lomb we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Bausch + Lomb, 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.