Even though Benchmark Electronics, Inc.'s (NYSE:BHE) stock is down 5.5% this week, insiders who bought lately made a US$2.7k profit

Insiders who bought Benchmark Electronics, Inc. (NYSE:BHE) in the last 12 months may probably not pay attention to the stock's recent 5.5% drop. Even after accounting for the recent loss, the US$86k worth of stock purchased by them is now worth US$89k or in other words, their investment continues to give good returns.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Before we look at these insider transactions though, you might like to know that our analysis indicates that BHE is potentially undervalued!

The Last 12 Months Of Insider Transactions At Benchmark Electronics

The Senior VP & Chief Human Resources Officer, Rhonda Turner, made the biggest insider sale in the last 12 months. That single transaction was for US$81k worth of shares at a price of US$26.05 each. That means that an insider was selling shares at around the current price of US$24.62. 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). Rhonda Turner was the only individual insider to sell over the last year.

Jeffrey Benck bought a total of 3.60k shares over the year at an average price of US$23.87. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Benchmark Electronics

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Benchmark Electronics insiders own 1.5% of the company, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Benchmark Electronics Insiders?

The fact that there have been no Benchmark Electronics insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Benchmark Electronics insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Benchmark Electronics. To help with this, we've discovered 2 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Benchmark Electronics.

But note: Benchmark Electronics 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.