Despite Genasys' Pullback, Insiders Still Gained US$77k

Insiders who bought Genasys Inc. (NASDAQ:GNSS) in the last 12 months may probably not pay attention to the stock's recent 16% drop. Reason being, despite the recent loss, insiders original purchase value of US$200.9k is now worth US$278.1k.

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 Genasys

The Last 12 Months Of Insider Transactions At Genasys

In the last twelve months, the biggest single purchase by an insider was when Director Mark Culhane bought US$133k worth of shares at a price of US$2.70 per share. Even though the purchase was made at a significantly lower price than the recent price (US$3.16), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Genasys insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$2.28. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

Genasys 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 Genasys 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Genasys insiders own 2.7% of the company, worth about US$4.8m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Genasys Insiders?

It doesn't really mean much that no insider has traded Genasys shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Genasys stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Genasys. For example - Genasys has 1 warning sign we think you should be aware of.

Of course Genasys may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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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.