CEO, President & Chairperson of Immersion Eric Singer Buys 3.4% More Shares

Investors who take an interest in Immersion Corporation (NASDAQ:IMMR) should definitely note that the CEO, President & Chairperson, Eric Singer, recently paid US$7.51 per share to buy US$358k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 3.4%.

The Last 12 Months Of Insider Transactions At Immersion

In fact, the recent purchase by CEO, President & Chairperson Eric Singer was not their only acquisition of Immersion shares this year. They previously made an even bigger purchase of US$438k worth of shares at a price of US$8.77 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.46). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. 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.

Happily, we note that in the last year insiders paid US$981k for 118.79k shares. On the other hand they divested 4.95k shares, for US$53k. In the last twelve months there was more buying than selling by Immersion insiders. 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!

Check out our latest analysis for Immersion

Immersion is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Immersion Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 8.6% of Immersion shares, worth about US$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Immersion Tell Us?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Immersion we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Immersion. To that end, you should learn about the 4 warning signs we've spotted with Immersion (including 2 which shouldn't be ignored).

Of course Immersion 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.