Insiders of Inotiv, Inc. (NASDAQ: NOTV) Profit After Buying Stock Worth $ 608,000 Last Year, Current Gains Are $ 1.1 Million
Insiders who bought Inotiv, Inc. (NASDAQ: NOTV) over the past 12 months could probably not pay attention to the stock’s recent 6.1% drop. The reason is, despite the recent loss, that the initial insider purchase value of US $ 608,000 is now worth US $ 1.7 million.
While insider trading isn’t the most important thing when it comes to investing for the long term, we think it makes perfect sense to keep tabs on what insiders are doing.
The last 12 months of insider trading at Inotiv
Over the past year, we can see that the biggest insider buy was made by COO John Beattie for US $ 116,000 of shares, at around US $ 14.00 per share. Even though the purchase was made at a significantly lower price than the recent price (US $ 51.57), we still believe that insider buying is positive. While it suggests that insiders consider the stock to be undervalued at lower prices, this trade doesn’t tell us much about what they think about current prices.
While Inotiv insiders have bought shares in the past year, they haven’t sold. Their average price was around US $ 18.77. We’re not denying that it’s nice to see insiders buying company stock. However, we do note that they were buying at prices significantly lower than today’s share price. You can see insider trading (by companies and individuals) over the past year represented in the graph below. If you want to know exactly who sold, for how much and when, just click on the graph below!
NasdaqCM: NOTV Insider Trading Volume November 24, 2021
There are many other companies in which insiders buy shares. You probably do not want to miss it free list of growing companies that insiders buy.
Does Inotiv boast of high insider ownership?
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. I think it’s a good sign if the insiders own a significant number of shares in the company. It’s great to see that Inotiv insiders own 32% of the company, worth around $ 402 million. I like to see this level of insider ownership because it increases the chances that management is thinking in the best interests of shareholders.
So what do Inotiv’s insider trading indicate?
It doesn’t really mean much that no insider traded Inotiv shares in the past quarter. But insiders have shown more appetite for the title over the past year. Judging by their deals and strong insider ownership, Inotiv insiders are feeling good about the future of the company. While we love to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. Our analysis shows 2 warning signs for Inotiv (1 is potentially serious!) And we strongly recommend that you review them before investing.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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