Are Insiders Selling Intevac, Inc. (NASDAQ:IVAC) Stock?

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Intevac, Inc. (NASDAQ:IVAC).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Intevac

The Last 12 Months Of Insider Transactions At Intevac

In the last twelve months, the biggest single sale by an insider was when the Executive VP & GM of the Thin Film Equipment, Jay Cho, sold US$80k worth of shares at a price of US$6.91 per share. So we know that an insider sold shares at around the present share price of US$6.06. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Jay Cho was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Intevac 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Intevac insiders have about 2.8% of the stock, worth approximately US$4.0m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Intevac Insiders?

It doesn't really mean much that no insider has traded Intevac shares in the last quarter. The insider transactions at Intevac are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. 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. Every company has risks, and we've spotted 1 warning sign for Intevac you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.
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