- United States
- Medical Equipment
For Inspire Medical Systems, Inc. (NYSE:INSP) insiders, selling US$5.8m worth of stock earlier this year was a smart move.
Last week, Inspire Medical Systems, Inc.'s (NYSE:INSP) stock jumped 7.8%, but insiders who sold US$5.8m worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$252, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Inspire Medical Systems
Inspire Medical Systems Insider Transactions Over The Last Year
The CEO, President & Director, Timothy Herbert, made the biggest insider sale in the last 12 months. That single transaction was for US$5.8m worth of shares at a price of US$252 each. That means that an insider was selling shares at around the current price of US$247. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Timothy Herbert was the only individual insider to sell shares in the last twelve months.
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!
I will like Inspire Medical Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Inspire Medical Systems Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Inspire Medical Systems insiders own 1.5% of the company, currently worth about US$106m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Inspire Medical Systems Insiders?
The fact that there have been no Inspire Medical Systems insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Inspire Medical Systems insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Inspire Medical Systems has 1 warning sign and it would be unwise to ignore this.
But note: Inspire Medical Systems may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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Inspire Medical Systems
Inspire Medical Systems, Inc., a medical technology company, focuses on the development and commercialization of minimally invasive solutions for patients with obstructive sleep apnea (OSA) in the United States and internationally.
Flawless balance sheet with reasonable growth potential.