II-VI Incorporated (NASDAQ:IIVI) up 7.8%, but insiders miss out having sold stock earlier this year

While it’s been a great week for II-VI Incorporated (NASDAQ:IIVI) shareholders after stock gained 7.8%, company insiders might have missed out on those gains after selling stock earlier this year. The return on their investment would have been much higher had they held on to their stock.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for II-VI

The Last 12 Months Of Insider Transactions At II-VI

In the last twelve months, the biggest single sale by an insider was when the CFO & Treasurer, Mary Raymond, sold US$68k worth of shares at a price of US$68.00 per share. That means that even when the share price was below the current price of US$70.79, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 1.3% of Mary Raymond's stake. The only individual insider seller over the last year was Mary Raymond.

Mary Raymond divested 1.20k shares over the last 12 months at an average price of US$66.85. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like II-VI better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of II-VI

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. II-VI insiders own 1.4% of the company, currently worth about US$103m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At II-VI Tell Us?

It doesn't really mean much that no insider has traded II-VI shares in the last quarter. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of II-VI insider transactions don't fill us with confidence. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for II-VI and we suggest you have a look.

But note: II-VI 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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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.