National Vision Holdings Independent Chairman Acquires 11% More Stock

Potential National Vision Holdings, Inc. (NASDAQ:EYE) shareholders may wish to note that the Independent Chairman, David Peeler, recently bought US$264k worth of stock, paying US$10.57 for each share. That's a very decent purchase to our minds and it grew their holding by a solid 11%.

Check out our latest analysis for National Vision Holdings

National Vision Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Chairman David Peeler was not their only acquisition of National Vision Holdings shares this year. They previously made an even bigger purchase of US$491k worth of shares at a price of US$14.45 per share. That means that an insider was happy to buy shares at above the current price of US$11.05. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months National Vision Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

National Vision Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does National Vision Holdings 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. Insiders own 2.0% of National Vision Holdings shares, worth about US$16m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The National Vision Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in National Vision Holdings shares, given these transactions (along with notable insider ownership of the company). If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: National Vision Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

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

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.