Have FARO Technologies Insiders Been Selling Stock?

We'd be surprised if FARO Technologies, Inc. (NASDAQ:FARO) shareholders haven't noticed that the Independent Chairman of the Board, Yuval Wasserman, recently sold US$335k worth of stock at US$18.09 per share. That sale was 14% of their holding, so it does make us raise an eyebrow.

See our latest analysis for FARO Technologies

FARO Technologies Insider Transactions Over The Last Year

The Independent Director Alexander Davern made the biggest insider purchase in the last 12 months. That single transaction was for US$515k worth of shares at a price of US$17.24 each. That means that even when the share price was higher than US$16.82 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Alexander Davern.

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!

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

Insider Ownership Of FARO Technologies

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From our data, it seems that FARO Technologies insiders own 1.6% of the company, worth about US$5.2m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The FARO Technologies Insider Transactions Indicate?

Insiders sold FARO Technologies shares recently, but they didn't buy any. But we take heart from prior transactions. But insiders own relatively little of the company, from what we can see. So overall it's hard to argue insiders are bullish. 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. While conducting our analysis, we found that FARO Technologies has 2 warning signs and it would be unwise to ignore these.

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.

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.

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