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We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in ReWalk Robotics Ltd. ( NASDAQ:RWLK ).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At ReWalk Robotics
Xu Han made the biggest insider purchase in the last 12 months. That single transaction was for US$15m worth of shares at a price of US$3.75 each. That means that an insider was happy to buy shares at above the current price. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. It’s not at all bad to see insiders buy shares at or above current prices. Xu Han was the only individual insider to buy shares in the last twelve months.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Are ReWalk Robotics Insiders Buying Or Selling?
In the last three months, CEO & Director Lawrence Jasinski sold US$94.1 worth of shares. That’s not much at all. The net selling is so small that it’s hard to draw any conclusions from these recent transactions.
Does ReWalk Robotics Boast High Insider Ownership?
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. From our data, it seems that ReWalk Robotics insiders own 7.6% of the company, worth about US$1.2m. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Do The ReWalk Robotics Insider Transactions Indicate?
Our data shows a little more insider selling than buying in the last three months. But the net divestment is not enough to concern us at all. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if ReWalk Robotics insiders bought more shares in the company. Along with insider transactions, I recommend checking if ReWalk Robotics is growing revenue. This free chart of historic revenue and earnings should make that easy .
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com .